Net Devices Inc $\text { INCOME STATEMENTS ( } \$ \text { in thousands) }$

question 39

Multiple Choice

Net Devices Inc. The following balance sheets and income statements are for Net Devices Inc., a manufacturer of small electronic devices, including calculators, personal digital assistants and mp3 players. For purposes of these questions assume that the company has an effective tax rate of 35%.

$\text { INCOME STATEMENTS ( } \$ \text { in thousands) }$


$\begin{array}{c}\begin{array}{lll} \text { Fiscal year end}\\ \text { Net sales}\\ \text { Cost of Goods Sold}\\ \text { Gross profit}\\\\ \text { Selling, general \& admin. Exp.}\\ \text { Income before deprec. \& amort.}\\\\ \text { Depreciation \& amortization}\\ \text { Interest expense}\\\\ \text { Income before tax}\\ \text { Provision for income taxes}\\ \text { Minority interest}\\\\ \text { Net income}\\\\ \text { Outstanding shares (in thousands) }\\ \text { Preferred Dividends (in thousands) }\end{array}\begin{array}{l}2011 \\\$ 11,455,500 \\\underline{(8.026 .450) }\\{3,429,050} \\\\\underline{(1.836 .400) }\\{1,592,650} \\\\(785,250) \\\underline{(46.195) } \\\\761,205 \\(157,725) \\\underline{\quad\quad-}\\\\\underline{\$603.480} \\\\308,515 \\\$ 85000 \\ \end{array}\begin{array}{l}2010 \\\$ 11,082,100 \\\underline{(7.940 .065) }\\{3,142,035} \\\\\underline{(1,789,200) }\\{1,352,835} \\\\(757,250) \\\underline{(43,340) }\\\\552,245 \\(112,290) \\\underline{\quad\quad-}\\\\\underline{ \$ 439.955} \\\\ 303,095 \\\$ 85,000 \end{array}\end{array}$
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Refer to the information for Net Devices Inc. What is the rate of return on assets for Net Devices for 2011?

• A) 11.64%
• B) 14.50%
• C) 12.60%
• D) 13.88%

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