The following accounts and December 31, 2012, balances of Georgia Optical Corporation are arranged in no particular order.

Total assets, Dec 31, 2011 . . . . . . . . $ 505,000
Common equity, Dec 31, 2011 . . . . . . 305,000
Net income, 2012 . . . . . . . . . . . . . . . . . 45,000
Interest expense, 2012 . . . . . . . . . . . . . . 3,500
Requirements
1. Prepare the company's classified balance sheet in account format at December 31, 2012.
2. Compute Georgia Optical's rate of return on total assets and rate of return on common stockholders' equity for the year ended December 31, 2012.
3. Do these rates of return suggest strength or weakness? Give yourreasoning.

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Retained carnings S 99,000 Common stock, $4 par 106,000 277,000 14,000 Dividends payable 61,000 Paid-in capital in excess of par-common 125,000 shares authorized, 25,000 shares issucd Inventory Property, plant, and cquipment, net Prepaid expenses Goodwill Accrued liabilities payable Long-term note payable Accounts receivable, net Cash $ 100,000 6,000 160,000 33,000 Accounts payable 103,000 Preferred stock, 5%, $14 par, 107,000 49,000 50,000 shares authorized, 7,000 shares issucd 98,000