If we simply aggregate the sales of the parent and subsidiary companies,without adjustment,when there have been intragroup sales,total income would be overstated.

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Intragroup sales refer to transactions that occur between entities that are part of the same group or family of companies. If we simply add up the sales of the parent and subsidiary without adjusting for intragroup sales, we would be counting these transactions twice and thus overstating total income. This would lead to an inaccurate picture of the company's financial performance. Therefore, it is important to adjust for intragroup sales to ensure accurate financial reporting.

If We Simply Aggregate the Sales of the Parent and Subsidiary