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

question 93

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 Net Devices' earnings per share for 2011?

Analyze and interpret correlation in the context of linear relationships.

Recognize the significance of normal distribution assumptions in regression analysis.

Understand the implications of a perfect linear relationship in correlation and regression analysis.

Understand the concepts and calculations related to the standard error of estimate in regression analysis.

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