P10-82A. (Learning Objectives 3, 6: Preparing a corporations Balance Sheet; measuring profitability) The following accounts and related balances of Pelican Designers, Inc., as of December 31, 20X6, are arranged in no particular order.

Cash	$ 55,000.00
Accounts receivable, net	$ 34,000.00
Paid-in capital in excess of parordinary	$ 20,000.00
Accrued liabilities	$ 24,000.00
Long-term note payable	$ 99,000.00
Inventory	$ 93,000.00
Dividends payable	$ 6,000.00
Retained earnings	?
Accounts payable	$ 136,000.00
Trademarks, net	$ 4,000.00
Preference share, $050, no-par, 11,000 shares authorized and issued	$ 29,700.00
Goodwill	$ 13,000.00
Interest expense	$ 15,600.00
Property, plant and equipment, net	$ 364,000.00
Ordinary share, $2 par, 600,000 shares authorized, 116,000 shares issued	$ 232,000.00
Prepaid expenses	$ 13,000.00
Ordinary shareholders equity, December 31, 20X6	$ 222,000.00
Net income	$ 32,000.00
Total assets, December 31, 20X6	$ 493,000.00
Treasury share ,21,000 shares at cost	$ 24,000.00

Requirements 1. Prepare Pelicans classified Balance Sheet in the account format at December 31, 20X6. 2. Compute rate of return on ordinary shareholders equity for the year ended December 31, 20X6. 3. Does the ROE suggest strength or weakness? Give your reason.