Check out page 219 of your textbook and explain one item from the section titled The Development of Consolidated Totals. Note the item and tell the class details of how that item would be adjusted at the end of a reporting cycle. Why is it important that intercompany transactions are eliminated prior to ssuing financial reports? In answering these questions, consider your readings, lecture, and your review of the Becker materials. (CO 3 ) The Development of Consolidated Totals A summary of the effects of intra-entity inventory transfers on consolidated totals follows: Revenues. Parent and subsidiary balances are combined, but all intra-entity transfers are then removed. Cost of Goods Sold. Parent and subsidiar ending inventory (reducing net income). amortizations. Inventory. Parent and subsidiary balances are combined. Any intra-entity gross profit remaining at the end of the current year is removed to adjust the reported balance to historical cost. interest's share of subsidiary dividends