Logitech International Questions

1. Using the Consolidated Balance Sheets for Logitech International S.A. (Logitech) for March 31, 2010 and 2009, prepare a common-size balance sheet. (plus Appendix for question 1)
2. Evaluate the asset, debt, and equity structure of Logitech, and explain trends and changes found on the common-size balance sheet. Ensure you cover each section of the Balance Sheet.
3. What is the Allowance for Doubtful Accounts? Explain the changes in Allowance for Doubtful Accounts in 2009 and 2010.

LOGITECH INTERNATIONAL S.A. CONSOLIDATED BALANCE SHEETS (In thousands, except share and per share amounts) March 31, 2010 2009 $ 319,944 Assets Current assets: Cash and cash equivalents Short-term investments Accounts receivable Inventories Other current assets Total current assets Property, plant, and equipment Goodwill Other intangible assets Other assets Total assets 195,247 219,593 58,877 793,661 91,229 553,462 95,396 65,930 $ 1,599,678 $ 492,7594 1,6374 213,9294 233,467 56,884 998,676 104,132 242,909 32,1094 43,704 $ 1,421,530 $ $ 257,955 182,336 440,291 159,672 599,963 157,798 131,496 289,294 134,5284 423,822 Liabilities and shareholders' equity- Current liabilities: Accounts payable Accrued liabilities Total current liabilities Other liabilities Total liabilities Commitments and contingencies Shareholders' equity: Share, par value CHF 0.25 - 191,606,620 issued and authorized and 50,000,000 conditionally authorized at March 31, 2010 and 2009 Additional paid-in capital Shares in treasury, at cost, 16,435,528 at March 31, 20104 and 12,124,078 at March 31, 2009 Retained earnings Accumulated other comprehensive loss Total shareholders' equity Total liabilities and shareholders' equity 33,370 14,880 33,370 45,012 (382,512) 1,406,618 (72,641) 999,715 $ 1,599,678 (341,454) 1,341,6614 (80,881) 997,708 $ 1,421,530