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

question 62

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 Net Devices' return on common shareholders' equity for 2011?

Apply percentage calculations to determine costs, savings, and benefits in various contexts.

Understand basic algebraic functions to represent and solve business-related problems.

Calculate earnings, including understanding how salary adjustments affect personal budgets.

Interpret and apply mathematical concepts to calculate employee benefits and deductions.

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Definitions:

Hormone

Chemical messengers produced by glands in the body that regulate physiological functions and behavior by traveling through the bloodstream to target organs.

Cognitions

Mental processes involved in gaining knowledge and comprehension, including thinking, knowing, remembering, judging, and problem-solving.

Jealous Feelings

Emotions that arise from perceived threats to a valued relationship or position, often involving fear and anger.

Social Comparison

The process of evaluating oneself in relation to others, often to assess one's abilities, appearance, or social status.