14.9% 20.8% 11.9% 17.9%

Orca Industries Below are the two most recent balance sheets and most recent income statement for Orca Industries. The company has an effective tax rate of 25% Balance Sheet 2019 2018 Assets: Cash Accounts Receivable (net) Inventory Long-lived assets Less: Accumulated depreciation Total assets $10.000 6,000 8,000 12.000 (4.000 $32.000 $ 6,000 1,500 10,000 11,000 (2.000 $26.500 Liabilities and Stockholders' Equity: Accounts payable Deferred revenues Long-term note payable Less: Discount on note payable Common stock Retained earings Total liabilities and stockholders' equity $ 5.000 1.000 10.000 (800) 12.000 4.800 $32.000 $ 6,000 2.000 10.000 (1,000) 6,000 3.500 S26.500 Income Statement For the year ended December 31, 2019 Revenues Cost of goods sold Depreciation expense Interest expense Bad debt expense Other expense (including income taxes) Net income $42.000 (24.000) (2.000) (3.000) (2.000) (8.500 $ 2.500 Refer to the information for Orca Industries. The return on equity for Orca Industries is