Orca Industries Below are the two most recent balance sheets and most recent inc

Question

Orca Industries Below are the two most recent balance sheets and most recent income statement for Orca Industries. The company has an ef fective tax rate of 35%. Balance Sheet 2011 2010 Assets: Cash Accounts Receivable (net) Inventory Long-lived assets Less: Accumulated depreciation 10,000 6,000 1,500 8,000 10,000 12,000 11,000 (4,000)(2000) 32.000 $26.500 6,000 Total assets 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 2,000 10,000 10,000 (800) (1,000) 6,000 4800 3500 3200 $26.500 1,000 2,000 Total liabilities and stockholders' equity

Explanation / Answer

1) Earning per share = Net income/share outstanding = 2000/9000 = 0.22

Weighted average share = (6000+12000/2) = 9000

so answer is a) 0.22

2) return on common shareholder's equity

Average common shareholder's equity = (16800+9500/2) = 13150

Return on common shareholder's equity = 2000*100/13150 = 15.2%

so answer is d) 15.2%

3) Assets turnover = 42000/29250 = 1.44

so answer is b) 1.44

Related Questions

Navigate

• Browse (All)
• Browse O
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.