As a long-term investment at the beginning of the year, Willie Winn Track Shoes purchased 25% of Betty Will Company's 34 million shares outstanding for $178 million. During the first year of the investment, Betty Will earned net income of $130 million and distributed cash dividends of $1.10 per share. During the second year of the investment, Betty Will earned net income of $142 million and again distributed cash dividends of $1.10 per share. Required: 1. Determine the financial statement effects of Willie Winn Track Shoes' initial investment in the Betty Will Company in the first year. 2. How will Willie Winn Track Shoes' share of Betty Will's net income and dividends affect its financial statements in the first year? 3. How will Willie Winn Track Shoes' share of Betty Will's net income and dividends affect its financial statements in the second year? 4. Determine the balance in the Betty Will Investments account at the end of the second year.

As a long-term investment at the beginning of the year, Wille Winn Track Shoes purchased 25\% of Betty Will Company's 34 million shares outstanding for $178 million. During the first year of the investment, Betty Will earned net income of $130 million and distributed cash dividends of $1,10 per share. During the second year of the investment, Betty Will earned net income of $142 million and again distributed cash dividends of $1.10 per share. Required: 1. Determine the financial statement effects of Willie Winn Track Shoes' initial investment in the Betty Will Company in the first year. 2. How will Willie Winn Track Shoes' share of Betty Will's net income and dividends affect its financial statements in the first year? 3. How will Willie Winn Track Shoes' share of Betty Will's net income and dividends affect its financial statements in the second year? 4. Determine the balance in the Betty Will Investments account at the end of the second year