1) Parris Corporation purchased 32% of Samitz Corporation for $118,000 on January 1. On November 17 of the same year, Samitz Corporation declared total cash dividends of $30,000. At year-end, Samitz Corporation reported net income of $78,000. The balance in the Parris Corporation's Long-Term Investment-Samitz account at December 31 should be:

a) $142,960. b) $118,000. c) $108,400. d) $102,640. e) $133,360.

2) Micron owns 35% of Martok. Martok pays a total of $51,000 in cash dividends for the period. Micron's entry to record the dividend transaction would include a:

a) Credit to Cash for $17,850.

b) Credit to Long-Term Investments for $17,850.

c) Debit to Cash for $51,000.

d) Credit to Investment Revenue for $51,000.

e) Debit to Long-Term Investments for $17,850.

3) Hamilton Company owns 46,200 of Hennie Company's 110,000 outstanding shares of common stock. Hennie Company pays $33,500 in total cash dividends to its shareholders. Hamilton's entry to record this transaction should include a:

a) Credit to Dividend Revenue for $33,500.

b) Debit to Interest Revenue for $14,070.

c) Credit to Long-Term Investments for $33,500.

d) Credit to Long-Term investments for $14,070.

e) Debit to Dividend Revenue for $14,070.

4) A company had a profit margin of 10.40% and total asset turnover of 1.83. Its return on total assets was: a) 12.23% b) 19.03% c) 5.68% d) 8.57% e) 13.35% 5) Clark Corporation purchased 40% of IT Corporation for $360,000 on January 1. On May 20 of the same year, IT Corporation declared total cash dividends of $90,000. At year-end, IT Corporation reported net income of $450,000. The balance in Clark Corporation's Long-Term Investment-IT Corporation account as of December 31 should be: a) $216,000. b) $360,000. c) $504,000. d) $666,000. e) $576,000. 6) Clark Corporation purchased 40% of IT Corporation for $360,000 on January 1. On May 20 of the same year, IT Corporation declared total cash dividends of $90,000. At year-end, IT Corporation reported net income of $450,000. The balance in Clark Corporation's Long-Term Investment-IT Corporation account as of December 31 should be: a) $216,000. b) $360,000. c) $504,000. d) $666,000. e) $576,000. 7) A company had net income of $2,710,000, net sales of $26,500,000, and average total assets of $11,000,000. Its return on total assets equals: a) 405.90%. b) 41.51%. c) 24.64%. d) 10.23%. e) 4.06%. 8) A company had net income of $50,000, net sales of $732,420, and average total assets of $234,000. Its profit margin and total asset turnover were, respectively: a) 21.37%; 6.83. b) 6.83%; 21.37. c) 3.13%; 21.37. d) 3.13%; 6.83. e) 6.83%; 3.13.