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

Total assets, Dec 31, 2011 . . . . . . . . $ 501,000
Common equity, Dec 31, 2011 . . . . . . 307,000
Net income, 2012 . . . . . . . . . . . . . . . . . 47,000
Interest expense, 2012 . . . . . . . . . . . . . . 3,000
Requirements
1. Prepare the company's classified balance sheet in account format at December 31, 2012.
2. Compute New Jersey 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 $ 151,500 Common stock, $4 par 125,000 shares authorized, 24,000 shares issucd 13,000 Dividends payable 64,000 Paid-in capital in excess of par-common 17,000 Accounts payable 101,000 Preferred stock, 5%, $13 par, Inventory Property, plant, and equipment, net Prepaid expenses Goodwill Accrucd liabilitics payable Long-term note payable Accounts reccivable, net 285,000 $ 96,000 4,000 140,000 32,000 50,000 shares authorized, 107,000 41,000 5,500 shares issucd Cash 71,500