Below are the two most recent balance sheets and most recent income statement for Orca Industries. The company has an effective tax rate of 35%.

Balance Sheet
	2014	2013
Assets:
Cash	$10,000	$ 6,000
Accounts Receivable (net)	6,000	1,500
Inventory	8,000	10,000
Long-lived assets	12,000	11,000
Less: Accumulated depreciation	(4,000)	(2,000)
Total assets	$32,000	$26,500
Liabilities and Stockholders Equity:
Accounts payable	$ 5,000	$ 6,000
Deferred revenues	1,000	2,000
Long-term note payable	10,000	10,000
Less: Discount on note payable	(800)	(1,000)
Common stock	12,000	6,000
Retained earnings	4,800	3,500
Total liabilities and stockholders equity	$32,000	$26,500

Income Statement

For the year ended December 31, 2014

Revenues

$42,000

Cost of goods sold

(24,000)

Depreciation expense

(2,000)

Interest expense

(3,000)

Bad debt expense

(2,000)

Other expense (including income taxes)

(9,000)

Net income $ 2,000

Refer to the information for Orca Industries. The return on common shareholders equity for Orca Industries is

a.	15.2%
b.	13.5%
c.	10%
d.	11.9%

____ 2. Refer to the information for Orca Industries. The profit margin for computing ROA for Orca Industries is

a.	9.4%
b.	13.5%
c.	4.8%
d.	12.3%

____ 3. Refer to the information for Orca Industries. Orcas accounts receivable turnover is (assume that Orca makes all sales on account)

a.	7.0
b.	.53
c.	11.2
d.	10

____ 4. Refer to the information for Orca Industries. Orcas inventory turnover is

a.	2.67
b.	3.0
c.	2.4
d.	1.0