The following accounts and related balances of Yeltsin Art Supply, Inc., are arranged in no particular order.

\section*{Required}

1. Prepare the company's classified balance sheet in the account format at June 30, 19X2 .

2. Compute rate of return on total assets and rate of return on common stockholders' equity for the year ended June \(30,19 \mathrm{X} 2\).

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

4. How will what you learned in this problem help you evaluate an investment?

Transcribed Image Text:

Cash... Accounts receivable, net............ Paid-in capital in excess $13,000 Interest expense. 46,000 Property, plant, and equipment, net.... $ 6,100 247,000 of par-common. 19,000 Common stock, $1 par, Accrued liabilities. 26,000 500,000 shares authorized, Long-term note payable. 72,000 236,000 shares issued 236,000 Inventory... 139,000 Prepaid expenses. 10,000 Dividends payable. 9,000 Revenue from donation... 6,000 Retained earnings.. ? Common stockholders' equity, Accounts payable.. 31,000 June 30, 19X1......... 322,000 Trademark, net... 9,000 Net income...... 31,000 Organization cost, net... 14,000 Total assets, June 30, 19X1 504,000 Preferred stock, $0.20, no-par, 10,000 shares authorized and issued........ 27,000