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 $30\%.$

Balance Sheet

Year $1$ Year $0$

Assets:

Cash $$10,000$ $$5,300$

Accounts Receivable $($net$)6,0001,500$

Inventory $8,00010,000$

Long$-$lived assets $12,00011,000$

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 $1,0002,000$

Long$-$term note payable $10,00010,000$

Less: Discount on note payable $(800)(1,000)$

Common stock $12,0006,000$

Retained earnings $4,8002,800$

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$

 

Refer to the information for Orca Industries. The return on assets for Orca Industries is ?