Raiders Limited is a private company that follows ASPE. It is authorized to issue an unlimited number of both common and $$5$ cumulative preferred shares. On December $31,2024,$ there were $35,000$ common and $1,000$ preferred shares issued. The common shares had been issued at an average per share amount of $$10$; the preferred shares at $$105.$ The balance in the Retained Earnings account on January $1,2024,$ was $$287,000.$ During $2024,$ the company had profit of $$125,000$ and declared a total of $$75,000$ of dividends, of which $$56,250$ was paid during the year.

Instructions

Prepare the shareholders$$ equity section of the balance sheet on December $31,2024.$

Calculate return on equity for $2024.$ Assume there were no changes in the Common Shares and Preferred Shares accounts during the year.