thommo77

Effects on interest using the equity method:
Interest income would increase your operating income.
On the BS, I know for a fact that Dividends decrease your investment in sub account through this relationship:
Beg. investment in sub
+ Pro rata share in earnings
- Dividends
End investment in sub
I don’t think interest payments would have any bearing since interest would be a coupon payment on debt issued by the sub to the parent.