SPS Technologies, Inc., was formed in 1903 as Standard Pressed Steel. Today the company is engaged in the design, manufacture, and marketing of high-strength mechanical fasteners, superalloys, and magnetic materials for the aerospace, automotive, and off-highway equipment industries. The company owns plants in the United States, the United Kingdom, Ireland, Australia, and Spain, and has minority interests in facilities in Brazil and India.

The following note to the financial statements appeared in a recent SPS annual report:

\section*{SPS TECHNOLOGIES, INC., Notes to the Financial Statements}

Investments: The Company's investments in affiliates consist of a \(16.75 \%\) interest in Precision Fasteners Ltd., Bombay, India; a \(46.49 \%\) interest in Metalac S.A. Industria e Comercio, Sao Paulo, Brazil; a \(51.0 \%\) interest in Pacific Products Limited, Guernsey, Channel Islands, United Kingdom; and a \(51.0 \%\) interest in National-Arnold Magnetics Company, Adelanto, California, United States. Dividends received from these companies were \(\$ 42,000, \$ 44,000\), and \(\$ 66,000\) in 1993, 1992, and 1991, respectively.

\section*{Instructions}

(a) Do the investments in these companies represent short- or long-term investments? Are these investments in the stocks or bonds of these companies?

(b) The ownership percentages in these companies vary. Based upon the information given, which accounting method seems appropriate for each company? What other information would you like to have before deciding how to account for each investment?

(c) What is the most likely method used to account for dividends received from Precision Fasteners? From National-Arnold Magnetics Company?