The accounts and June 30, 2007, balances of Cromwell Company are arranged in no particular order:

Requirements 

1. Prepare the company's classified balance sheet in account format at June 30, 2007.

2. Compute Cromwell's rate of return on total assets and rate of return on common stockholders' equity for the year ended June 30, 2007. For the rates of return, you will need these data: 

3. Do these rates of return suggest strength or weakness? Give your reason.

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Accounts receivable, net Paid-in capital in excess of par-common $46,000 Property, plant, and equipment, net $231,000 19,000 Common stock, $1 par, Accrued liabilities payable 26,000 500,000 shares authorized, Long-term note payable 12,000 236,000 shares issued 236,000 Inventory 81,000 Dividends payable 9,000 Prepaid expenses 10,000 Retained earnings 42,000 Cash 10,000 Preferred stock, $0.10, no-par, Accounts payable 31,000 10,000 shares authorized Trademark, net 22,000 and issued 25,000