Part 1: Madison Corporation purchased 45% of Jay Corporation for $120,000 on January 1. On June 20 of the same year, Jay Corporation declared total cash dividends of $30,000. At year-end, Jay Corporation reported net income of $150,000. The balance in Madison's Equity Method InvestmentsJay Corporation account as of December 31 should be:

Multiple Choice

• $201,000.

• $174,000.

• $231,000.

• $81,000.

• $120,000.

Part 2:

A company's income statement showed the following: net income, $138,000 and depreciation expense, $34,200. The company's current assets and current liabilities showed the following changes: accounts receivable decreased $10,800; merchandise inventory increased $20,800; and accounts payable increased $4,800. Calculate the net cash provided or used by operating activities.

Multiple Choice

• $132,000.

• $177,400.

• $135,800.

• $167,000.

• $199,000.

Part 3:

The accountant for TI Company is preparing the company's statement of cash flows for the fiscal year just ended. The following information is available:

Retained earnings balance at the beginning of the year	$ 176,000
Cash dividends declared for the year	56,000
Net income for the year	104,500

What is the ending balance for retained earnings?

Multiple Choice

• $301,500.

• $15,500.

• $280,500.

• $224,500.

• $120,000.

Part 4:

Jones Corporation reported current assets of $199,000 and current liabilities of $140,000 on its most recent balance sheet. The working capital is:

Multiple Choice

• 142%.

• 70%.

• ($59,000).

• $59,000.

• 42%.

Part 5:

Martinez Corporation reported net sales of $767,000, net income of $140,000, and total assets of $7,654,374. The profit margin is:

Multiple Choice

• 548.0%.

• 5.48%.

• 81.75%.

• 1.83%.

• 18.25%.