Below are the two most recent balance sheets and most recent income statement for Orca Industries. The company has an effective tax rate of 30%.

Balance Sheet

Year 1 Year 0

Assets:

Cash $10,000 $5,300

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 $25,800

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 2,800

Total liabilities and stockholders' equity $32,000 $25,800

Income Statement For the year ended December 31,

Year 1 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

PART A Refer to the information for Orca Industries. The return on assets for Orca Industries is:

PART B Orca's accounts receivable turnover is (assume that Orca makes all sales on account):