Question 5 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 35%. Balance Sheet Assets: 2011 2010 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 Deferred revenues Long-term note payable Less: Discount on note payable Common stock Retained earnings $5,000 $6,000 1,000 2,000 10,000 10,000 (800) (1,000) 12,000 6,000 4,800 3,500 Total liabilities and stockholders' equity$32,000$26,500