Fashion World Inc. reported the following accounts and balances in its unadjusted trial balance as at December 31, 2014 (in thousands of Canadian dollars). Note that the accounts are listed in alphabetical order:

Additional information is as follows:
a. All of these accounts have €œnormal€ debit and credit balances.
b. The note payable was signed on March 1, 2013.
c. The company is subject to an income tax rate of 30 percent.
Required
1. Identify the accounts that would be listed in a statement of earnings.
2. Prepare the statement of earnings for Fashion World Inc. for the year ended December 31, 2014.
3. Prepare the assets section only of a classified statement of financial position as at December 31, 2014.
4. Compute the return on assets (ROA) based on your answers to the previous requirements. Assume that the company reported total assets of $ 186,200 at December 31, 2013. How would you interpret the ROA?

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Accumulated depreciation Cash Contributed capital (1,000 shares) Cost of sales Depreciation expense Furniture and equipment, at cost Insurance expense Investments (long term) Merchandise inventory Other operating expenses $ 28,600 Note payable, 5%, due March 1, 2016 $ 35,000 1,050 13,850 19,550 30,500 232,250 1,100 950 34,400 30,000 14,000 Prepayments 50,000 158,500 Rent expense Retained earnings, January 1, 2014 9,600 Salaries expense 68,800 Sales revenue 750 Supplies expense 37,000 Supplies inventory 26,000 Trade payables 7,700 Trade receivables