Honda Motor Co. and its subsidiaries (collectively €˜Honda€™) develop, manufacture, distribute and provide financing for the sale of its motorcycles, automobiles and power products. The consolidated financial statements have been prepared in a manner and reflect the adjustments that are necessary to be in conformity with accounting principles generally accepted in the United States of America.
You will find below the consolidated balance sheets as at 31 March 2006 to 2011, as well as some additional information (Source: annual reports 2006 to 2011).
Required
1 Compute for the years 2006 to 2011 the following ratios:
=> Weight of tangible fixed assets (net tangible assets/total assets).
=> Rate of return on tangible fixed assets (net income/net tangible assets).
=> Tangible fixed assets turnover (net sales/average tangible fixed assets €“ at book value).
=> Average age of tangible assets (accumulated depreciation at year-end/depreciation expense for the year).
=> Average useful life of tangible assets (gross value of depreciable assets at year-end/depreciation expense for the year). Explain in detail your computation and the assumption(s) you must make.
2 Comment on your results.

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Honda Motor Co. Consolidated balance sheets Yen (millions) Assets Current assets Cash and cash equivalents Trade accounts and notes receivable, net 31 March 2006 2007 2008 2009 2010 2011 716,788 945,546 1,050,902 690,3691,119,902 1,279,024 963,320 1,055,470 1,021,743 854,214883,476 787.691 of allowance for doubtful accounts Finance subsidiaries-receivables, net Inventories Deferred income taxes Other current assets Total cument assets Finance subsidiaries-receivables, net Investments and advances: Investments in and advances to affiliates Other, including marketable equity 1,230,912 1,426,224 1,340,728 1,172,030 1,100,158 1,131,068 935,629899,813 176,604 202.291 390,160 ,036,304 1,183,116 1,199,260 1,243,961 198,158 462,446 221,294 215,172 406,985 158,8251 460,110 426,863 397,955 4,575,603 5,252,391 5,231,5684,621,1784,613,724 4,690,047 2,982,425 3,039,826 2,707,820 2,400,282 2,361,335 2,348,913 408,993 487,538 549,812505,835 457,834440,026 133,234 184847 199,906 298,460 254.610 222,110 securities 453 742,148 771922 639,069 Total investments and advances 642,681639,932 Property on operating leases: Vehicles Less accumulated depreciation 345,9091,014,412 1,557,060 1,651,672 1,645,517 343,525 287,885 9,700 95,440 269,261 336,209 918,972 1287,799 1,308 147 1,357,632 Property, plant and equipment, at cost: Land Buildings Machinery and equipment Construction in progress 384447 429,373 457 352 469279 489769 483,654 1,149,517 322394 1,396,934 144600 1509,821 1,473,067 2,562,507 2,988,064 3,135,5133,133,439 3,257,455 3,166,353 143,862202,186 4,212,289 4,944,149 5,217,278 5,208,375 5,400,907 5,325,260 2,397,022 2,865,421 3,015,979 3,060,654 3,314,244 3,385,904 115,818 204,318 227479 159,567 Less aocumulated depreciation and amortizaton 1,815,267 2,078,728 2,201,2992147,721 2,086,663 1,939,356 Net property, plant and equipment Other assets net of allowanoe for doubtful accounts Total assets Current liabilities: Short-term debt Current portion of long-term debt Trade payables: Notes Trade payables: Accounts Accrued expenses Income taxes payable Other current liabilities Total current liabilities Long-term debt, excluding current portion Other liabilities Total iabilities Minority interests in consolidated 550,652 587,198 783,962722,868 616,565594,994 10,631,400 12,036,50012615,543 11,818,917 11,629,115 11,570,874 693,557 1,265,868 1,687,1151,706,819 1,066,3441,094,740 871,050977,523 657 645 775,409 33,276 31,834 1,015,409 1,133,280 1,015,130 674,498 730,615 562,673 32,614 722,296962,455 25,216 802,464691,520 542,52 525,540 31,960 236,854 236,761 31,698 39,006 24,704 786,972 110,160 807,341 76,031 196,322 71,354 23,947 198,226 251,407 3,493,667 4,287,527 4,672,336 4,237,3683,419,130 3,568,192 1,879,000 1,905,743 1,836,652 1,932637 2,313,035 2,043,240 1,045,523 1,237,712 1,414,270 1,518,568 1,440,520 1,376,530 6,418,190 7,430,982 7,923,258 7,688,573 7,172,685 6,987,962 87,460122,907 141,806 123,056127,790 132,937 Stockholders' equity: Common stock Capital surplus Legal reserves Retained earnings Accumulated other comprehensive income (407,187(427,166) (782,198) (1322,828) (1,208,162) (1495,380) 86,067 172,529 172,529 46,330 4,267,886 4,654,890 5,106,197 5,099,267 5,304,473 5,666,539 86,067 172,529 35,811 86,067 172,529 37,730 86,067 172,529 172,529 43,965 86,067 86,067 39,811 45,463 (loss), net Treasurys Total stockholders' equity Total liabilities, minority interests and stockholders' equity stock, at oost (29,356)41,439(71,927)(71,712) 6,11 4,125,750 4,482,611 4,550,479 4,007,2884,328,640 4,449,975 10,631,400 12,036,500 12615,543 11,818,917 11,629,115 11,570,874