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.Use the information to calculate the following information:
a.Compute the rate of return on assets for Net Devices for both 2011 and 2010.Disaggregate the rate of return on assets into the profit margin on ROA and asset turnover components.The income tax rate is 35%.
b.Calculate the accounts receivable turnover ratio for Net Devices for 2011 and 2010.All of the company's sales were made on account.
c.Calculate the inventory turnover ratio for Net Devices for 2011 and 2010.
d.Calculate the fixed assets turnover ratio for Net Devices for 2011 and 2010.
e.Calculate the rate of return on common shareholders' equity for Net Devices for 2011 and 2010.The amount of preferred dividends paid each year appears after the income statement.Calculate profit margin for ROCE.
f.Determine Net Devices capital structure leverage for 2011 and 2010.
g.Calculate Net Devices earnings per share for 2011 and 2010.
ASSETS (in thousands)

\begin{array}{lrrr}\text { Fiscal year end }&2011 & 2010 & 2009\\\text { Cash } & \$ 875,650 & \$ 571,250 & \$ 154,230 \\\text { Marketable securities } & 6,560 & 0 & 0 \\\text { Receivables } & 771,580 & 775,250 & 902,000 \\\text { Inventories } & 1,320,150 & 1,254,600 & 1,418,500 \\\text { Other current assets } & 249,000 & 231,200 & 229,900\\\text { Total current assets }&3,222,940 & 2,832,300 &2,704,630\\\\\text { Property, plant \& equipment } & 1,118,750 & 1,100,300 & 1,122,400 \\\\\text { Intangibles } & 263,050 & 241,000 & 215,600 \\\text { Deposits \& other assets } & 184,500 & 168,250 & 168,900\\\text { Total assets }&\$ 4.789 .240 & \$ 4.341 .850& \$ 4.211 .530\end{array}

\text { LIABILITIES (in thousands) }

\begin{array}{lrrr}\text { Fiscal year end } & 2011 & 2010 & \mathbf{2 0 0 9} \\\text { Accounts payable } & \$ 1,178,540 & \$ 1,061,100 & \$ 1,138,250 \\\text { Current long term debt } & 18,100 & 316,500 & 150,900 \\\text { Accrued expenses } & 664,100 & 615,900 & 585,400 \\\text { Income taxes payable } & 138,900 & 108,400 & 38,200 \\\text { Other current liabilities } & 0 & 0 & 0\\\text { Total current liabilities }&1,999,640 & 2,101,900 &1,912,750\\\\\text { Long term debt } & 478,250 & 378,400 & 599,630 \\\text { Other long term liabilitieg } & 13,350 & 0 & 0\\\text { Total liabilities }& 2,491,240 & 2,480,300 & 2,512,380\\\\\text { Preferred stock } & 850,000 & 850,000 & 550,000 \\\text { Common stock net } & 4,000 & 3,950 & 3,800 \\\text { Additional Paid-in Capital } & 869,000 & 758,000 & 689,500\end{array}

\begin{array}{lll}\text { Retained earnings }&1,430,500 & 1,055,000 & 1,245,050 \\\text { Treasury stock }&(855,500) & (805,400) & (789,200) \\\text { Shareholders' equity}& 2,298,000 & 1,861,550 & 1,699,150 \\\\\text { Total Liab, \& Equity }&\$ 4.789 .240&\$ 4.341 .850&\$ 4.211 .530 \\\end{array}

\begin{array}{lcc}\text { INCOME STATEMENT (in thousands) }\\\text { Fiscal year end } & 2011 & 2010 \\\text { Net sales } & \$ 11,455,500 & \$ 11,082,100 \\\text { Cost of Goods Sold } &(8,026,450)&(7,940,065) \\\text { Gross profit } & 3,429,050 & 3,142,035\\\\\text { Selling, general \& admin Exp. }&(1,836.400)&(1,789,200)\\\text { Income before deprec, \& amort, }&1,592,650 & 1,352,835\\\\\text { Depreciation \& amortization}&(785,250) & (757,250) \\\text { Intereat expense} &(46,195) & (43.340)\\\\\text { Income before tax } & 761,205 & 552,245 \\\text { Provision for income taxes } & (157,725) & (112,290) \\\text { Minority interest } & \ldots & \ldots \\\\\text { Net income }&\$603.480&\$ 439.955\\\\\text { ADDITIONAL INFORMATION }\\\text { Outstanding shares } & 308,515,000 & 303,095,000 \\\text { Preferred Dividends--Total } & \$ 85,000,000 & \$ 85,000,000\end{array}

Adjustments for Dilutive Securities and the Adjustment to Weighted Average

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