Orca Industries
Below Are the Two Most Recent Balance Sheets

question 32

Multiple Choice

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
$\begin{array}{l}\begin{array}{lll}\\\text {Assets:}\\\text {Cash}\\\text {Accounts Receivable (net) }\\\text {Inventory}\\\text {Long-lived assets}\\\text {Less: Accumulated depreciation}\\\text {Total assets}\\\end{array}\begin{array}{lll}2011&2010\\\\\$ 10,000 & \$ 6,000 \\6,000 & 1,500 \\8,000 & 10,000 \\12,000 & 11,000 \\\underline{(4,000) } & \underline{(2,000) } \\\underline{\$ 32,000 }& \underline{\$ 26,500}\end{array}\end{array}$


$\text { Liabilities and Stockholders' Equity: }$
$\begin{array}{lrr}\text { Accounts payable } & \$ 5,000 & \$ 6,000 \\\text { Deferred revenues } & 1,000 & 2,000 \\\text { Long-term note payable } & 10,000 & 10,000 \\\text { Less: Discount on note payable } & (800) & (1,000) \\\text { Common stock } & 12,000 & 6,000 \\\text { Retained earnings } &\underline{ 4,800 }&\underline{3,500}\\\text { Total liabilities and stockholders' equity } &\underline{ \$ 32.000 }&\underline{ \$ 26,500}\\\end{array}$


Income Statement
For the year ended December 31, 2011
$$\begin{array}{l}\begin{array} { l } \text { Revenues }& \$42,000 \\\text { Cast af goods sold }&( 24,000 ) \\\text { Depreciation expense } &( 2,000 ) \\\text { Interest expense } &( 3,000 ) \\\text { Bad debt exanense }&( 2,000 ) \\\text { Other expense (including income taxes) }&\underline{(9,000) } \\\text { Net incame }&\underline{\$2,000}\end{array}\\\begin{array} { l } \end{array}\end{array}$$
-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%

Apply the sociological imagination to personal views and social controversies.

Comprehend the distinction between manifest and latent functions in society.

Distinguish between macrosociology and microsociology and their respective focuses.

Appreciate the importance of diversity in sociological analysis and how it is intertwined with various social institutions.

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Definitions:

Verifiable Evidence

Information or data that can be substantiated or confirmed through observation, measurement, and documentation.

Proprietorships

A type of business entity that is owned and run by one individual with no legal distinction between the owner and the business.

Partnerships

Partnerships indicate a legal form of business operation between two or more individuals who share management and profits.

Corporations

Legal entities that are separate from their owners, offering limited liability to shareholders, and having the ability to own property, sue, or be sued.