Net Devices Inc $$\text { ASEETE (\$in thausands) }$$

question 24

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
$$\text { ASEETE (\$in thausands) }$$
$\begin{array}{l}\begin{array}{lll}\text {Fiscal year end}\\\text {Cash}\\\text {Marketable securities}\\\text {Receivables}\\\text {Inventories}\\\text {Other current assets}\\\text {Total current assets}\\\\\text {Property, plant \& equipment}\\\\\text {Intangibles}\\\text {Deposits \& other assets}\\\text {Total assets}\\\end{array}\begin{array}{lll}2011 & 2010 &2009\\\$ 875,650 & \$ 571,250 &154,230\\6,560 & 0 &0\\771,580 & 775,250&902,000 \\1,320,150 & 1,254,600 &1,418,500 \\\underline{249,000} &\underline{ 231,200}&\underline{229,900 }\\3,222,940 & 2,832,300 &2,704,630\\\\1,118,750 & 1,100,300 & 1,122,400\\\\263,050 & 241,000&215,600 \\\underline{184,500} &\underline{ 168,250}&\underline{168,900}\\\underline{\$ 4789240}&\underline{\$ 4341850}& \underline{\$ 4211530}\end{array}\end{array}$

$\begin{array}{l}\begin{array}{lll}\text { LIABILITIES (\$ in thousands) }\\\\\text {Fiscal year end}\\\text {Accounts payable}\\\text {Current long term debt}\\\text {Accrued expenses}\\\text {Income taxes payable}\\\text {Other current liabilities}\\\text {Total current liabilities}\\\\\text {Long term debt}\\\text {Other long term liabilities}\\\text {Total liabilities}\\\\\text {Preferred stock}\\\text {Common stock net}\\\text {Additional Paid-in Capital}\\\text {Retained earnings}\\\text {Treasury stock}\\\text {Shareholders' equity}\\\\\text {Total Liab, \& Equity}\\\end{array}\begin{array}{lll}\\ \\2011 & 2010 &2009\\\$ 1,178,540 & \$ 1,061,100 & \$ 1,138,250 \\18,100 & 316,500 & 150,900 \\664,100 & 615,900 & 585,400 \\138,900 & 108,400 & 38,200 \\\underline{0 }& \underline{0 }&\underline{ 0} \\1,999,640 & 2,101,900 & 1,912,750 \\\\478,250 & 378,400 & 599,630 \\\underline{13,350} & \underline{0 }&\underline{0}\\2,491,240 & 2,480,300 & 2,512,380\\\\850,000 & 850,000 & 550,000 \\4,000 & 3,950 & 3,800 \\869,000 & 758,000 & 689,500 \\1,430,500 & 1,055,000 & 1,245,050 \\\underline{(855,500) }& \underline{(805,400) } & \underline{(789,200) }\\\underline{2,298,000} & \underline{1,861,550 }& \underline{1,699,150}\\\\\underline{\underline{\$ 4,789,240} }&\underline{\underline{\$ 4,341,850 }}& \$ \underline{\underline{4,211,530}}\\\end{array}\end{array}$
$\begin{array}{lcc}\text { INCOME STATEMENTS (f in thousands) }\\\\\text { Fiscal year end } & \mathbf{2 0 1 1} & \mathbf{2 0 1 0} \\\text { Net sales } & \$ 11,455,500 & \$ 11,082,100 \\\text { Cost of Goods Sold } & \underline{(8,026,450) }& \underline{(7,940,065) }\\\text { Gross profit }&3,429,050&3,142,035\\\\\text {Selling, general \& admin. Exp. }&\underline{(1,836,400) }&\underline{(1,789,200) }\\\text {Income before deprec. \& amort.}&1,592,650&1,352,835 \\\\\text {Depreciation \& amortization }&(785,250) & (757,250) \\\text {Interest expense}&\underline{(46,195) } & \underline{(43,340) }\\\\\text { Income before tax } &761,205&552,245\\\text { Provision for income taxes } &(157,725) &(112,290) \\\text { Minority interest }&--&--\\\\\text { Net income }&\underline{\underline{\$ 603.480}}&\underline{\underline{\$ 439.955}} \\\\\text { Outstanding shares (in thousands) } & 308,515 & 303,095 \\\text { Preferred Dividends (in thousands) } & \$ 85,000 & \$ 85,000\end{array}$
-Refer to the information for Net Devices Inc.What is the inventory turnover for Net Devices for 2011?

Understand different types of computer systems and software used in business.

Recognize the significance and applications of various software programs in organizational contexts.

Identify the characteristics and functions of operating systems.

Understand the role and impact of electronic spreadsheets in decision making and data analysis.

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Definitions:

Foreign Tax Credit

A tax credit that reduces the tax liability of an individual or entity for certain taxes paid to foreign governments.

Form 1116

A tax document used to claim foreign tax credit that reduces double taxation by the United States on income earned abroad.

Passive Income

Income earned from rental property, limited partnerships, or other enterprises in which a person is not actively involved.

Foreign Tax Credit

A nonrefundable tax credit for income taxes paid to a foreign government as a result of foreign income tax withholdings.