Net Devices Inc $\text { ASEETS (\$in thousands) }$ $\text { LIABLIIES ( \$ in thousands) }$

question 14

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%.
BALANCE SHEETS
$\text { ASEETS (\$in thousands) }$


$\begin{array}{c}\begin{array}{lll}\text { Fiscal year end}\\ \text { Cash}\\ \text { Marketable securities}\\ \text { Receivables}\\ \text { Inventories}\\ \text { Other current assets}\\ \text { Total current assets}\\\\ \text { Property, plant \& equipment}\\\\ \text { Intangibles}\\ \text { Deposits \& other assets}\\ \text { Total assets} \end{array}\begin{array}{l}2011 \\\$ 875,650 \\6,560 \\771,580 \\1,320,150 \\\underline{249,000}\\{3,222,940} \\\\1,118,750 \\\\263,050 \\\underline{184,500}\\\underline{\$ 4,789,240} \end{array}\begin{array}{l}2010 \\\$ 571,250 \\0 \\775,250 \\1,254,600 \\\underline{231,200}\\2,832,300 \\\\1,100,300 \\\\241,000 \\\underline{168,250}\\\underline{ \$ 4,341,850} \end{array}\begin{array}{l}2009 \\\$ 154,230 \\0 \\902,000 \\1,418,500 \\\underline{229,900}\\{2,704,630} \\\\1,122,400 \\\\215,600 \\\underline{168,900}\\\underline{\$ 4211530} \end{array}\end{array}$
$\text { LIABLIIES ( \$ in thousands) }$

$\begin{array}{c}\begin{array}{lll}\text {Fiscal year end}\\\text {Accounts payable}\\\text {Current long term debt}\\\text {Acculed expenses}\\\text {Income taxespayable}\\\text {Other curent liabilities}\\\text {Total current liabilities}\\\\\text {Long term debt}\\\text {Other long term liabilities}\\\text {Total liabilities}\\\\\text {Preferred stock}\\\text {Common stock net}\\\text {Adchtional Paid-in Capital}\\\text {Retained earnings}\\\text {Treasuy stock}\\\text {Shareholders' equity}\\\\\text {Total Liab \& Equity} \end{array}\begin{array}{l}2011 \\\$ 1,178,540 \\18,100 \\664,100 \\138,900 \\\underline{\quad0}\\{1,999,640} \\\\478,250 \\\underline{13,350}\\{2,491,240} \\\\850,000 \\ 4,000 \\869,000 \\1,430,500 \\\underline{(855,500) }\\\underline{2,298,000} \\\\\underline{\$ 4789240} \\ \end{array}\begin{array}{l}2010 \\\$ 1,061,100 \\316,500 \\615,900 \\108,400 \\\underline{\quad0}\\{2,101,900} \\\\378,400 \\\underline{\quad0}\\{2,480,300} \\\\850,000 \\3,950 \\758,000 \\1,055,000 \\\underline{(805,400) }\\\underline{1,861,550} \\\\ \underline{\$ 4,341,850} \end{array}\begin{array}{l}2009 \\\$ 1,138,250 \\150,900 \\585,400 \\38,200 \\\underline{\quad0}\\1,912,750 \\\\599,630 \\\underline{\quad0}\\ 2,512,380 \\\\550,000 \\3,800 \\689,500 \\1,245,050 \\\underline{(789,200) } \\\underline{ 1,699,150}\\\\\underline{\$4,211,530} \end{array}\end{array}$
$\text { INCOME S'TATEMENTS (\$ in thousands) }$

$\begin{array}{c}\begin{array}{lll}\text {Fiscal year end}\\\text {Net sales}\\\text {Cost of Goods Sold}\\\text {Grosspiofit}\\\\\text {Selling, general \& admin. Exp.}\\\text { Income before deprec. \& amort.}\\\\\text {Depreciation \& amortization }\\\text {Interest expense}\\\\\text {Income before tax}\\\text {Provision for income taxes}\\\text {Minority interest}\\\\\text {Net income}\\\\\text {Outstanding shares(in thousands) }\\\text {Preferred Dividends (in thousands) }\end{array}\begin{array}{l}2011 \\\$ 11,455,500\\\underline{(8,026,450) }\\{3,429,050} \\\\\underline{(1,836,400) }\\{1,592,650} \\\\\text { (785,250) } \\\underline{(46,195) }\\\\761,205 \\(157,725) \\\underline{\quad\quad--}\\\\\underline{\$603,480 }\\\\308,515 \\\$85,000 \end{array}\begin{array}{l}2010 \\\$ 11,082,100 \\\underline{(7,940,065}\\{3,142,035} \\\\\underline{(1,789,200) }\\{1,352,835} \\\\(757,250) \\\underline{(43,340} \\\\552,245 \\(112,290) \\\underline{\quad\quad--}\\\\\underline{\$439,955}\\\\303,095\\\$85,000 \end{array}\end{array}$
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Refer to the information for Net Devices Inc. What is the inventory turnover for Net Devices for 2011?

• A) 10.32
• B) 8.90
• C) 2.51
• D) 6.23

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Definitions:

Cranial Nerves

The 10 to 12 pairs of nerves in vertebrates that emerge directly from the brain; they transmit sensory information to the CNS: some cranial nerves transmit motor information from the CNS to effectors.

Somatic Division

The part of the body excluding the reproductive cells, involved in growth and development of an organism.

Peripheral Nervous System

The part of the nervous system outside the brain and spinal cord, including nerves and ganglia, responsible for transmitting information to and from the central nervous system.

Voluntary Movement

Movement controlled by the individual's conscious mind, primarily involving the skeletal muscle system.