Question
Use the following balance sheet and income statement information to answer Questions 16 through 20 on Orca Industries. Below are the two most recent balance
Use the following balance sheet and income statement information to answer Questions 16 through 20 on 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 (As of December 31) |
|
|
| 2019 | 2018 |
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, 2019)
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. What was the return on assets (ROA) for Orca Industries in 2019?
Refer to the information for Orca Industries in Question 16. What was the profit margin for ROA for Orca Industries in 2019
Refer to the information for Orca Industries in Question 16. What was Orca Industries total assets turnover in 2019?
Refer to the information for Orca Industries in Question 16. What was Orca Industries accounts payable turnover?
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started