Need help on problem P10-89B

4.5,6 P10- 89B. (Learning Objectives 4, 5, 6: Prepare a corporation's balance sheet; measure profitability) The following accounts and related balances of Cardinal Designers, Inc., as of December 31, 2018, are arranged in no particular order S 16,300 Accounts receivable, net Paid-in capital in excess 545,000 Interest expense.... 21,000 Property, plant, and equipment, net 358,000 of par-commom.. 16,000 Common stock, S1 par, Accrued liabilitics.29,000 1,500,000 shares authorized, Long-term note payable 90,00 117,000 shares issued.117,000 Inventory Div Retained earning Accounts payable Trademarks, net 89,000 Prepaid expenses.. 24,000 payable 4,000 Common stockholders equity, December 31, 2017221,000 133,000 Net income. 9,000 Total assets, 20,000 Treasury stosk 90,000 December 31, 2017496,000 20,000 shares at cost .35,000 Goodwill Requirements 1. Prepare Cardinal's classified balance sheet in the account format at December 31, 2018 2. Use a DuPont Analysis to calculate rate of return on total assets and rate of return on mon stockholders' equity for the year ended December 31, 2018. com 3. Do these rates of return suggest strength or weakness? Give your reason. What additional information might help you make your decision? P10-90B. (Learning Objective S: Differentiate financing with debt vs. equity) Orchard Medical Goods is embarking on a massive expansion. Assume the plans call for LO 5 stores during the next two years. Each store is scheduled to be 30% larger than the w company's existing locations, offering more items of inventory and with plays. Management estimates that company operations will needed for expansion. Orchard Medical must raise the remain provide $1.0 million of the cash $4.75 million from outsiders. The board of directors is considering obtaining the $4.75 milli or by issuing an additional 200,000 shares of common stock. This S5 million before interest and taxes and has 200,000 shares of S ing. The market price of the company's stock is $23.75 per share. Assun year the company has earned taxes is expected to grow by 30% each year for the next two years, The