Emerald Investments, Inc. purchased 40% of the common stock of Diamond Corporation on March 1, 2018. Diamond Corporation reports a net income of $675,000 for the year 2019. Which of the following is true of the balance sheet on December 31, 2019?
a. Total assets will remain unchanged.
b. Total liabilities will decrease.
c. Total equity will increase.
d. Cash will increase.

Lillypad toys is a manufacturer of educational toys for children. six months ago, the company's research and development division came up with an idea for a unique touchscreen device that can be used to introduce children to a number of foreign languages. three months ago, the company produced a working prototype, and last month the company successfully launched its new device on the commercial market. what should lillypad's managers prepare for next? a. increased competition from imitators b. a prolonged period of uncontested success c. a sharp decline in demand for the product d. a difficult struggle to move from invention to innovation