The following accounts and related balances of Etse Manufacturing Inc. at December 31, 2020 are arranged in no particular order:

Required

1. Prepare the company’s classified balance sheet in the report format at December 31, 2020.

2. Compute the return on total assets and the return on common shareholders’ equity for the year ended December 31, 2020.

3. Do these rates of return suggest strength or weakness? Give your reason.

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$ 23,000 Accounts Payable.. 100,500 Retained Earnings.. 100,000 Interest Expense.. 35,000 Dividends Payable. Accrued Liabilities. $ 36,000 Long-term Note Payable.. Accounts Receivable, net. Cash. . 10,850 4,500 190,500 Total assets, Dec. 31, 2019. . 567,500 Inventory. Property, Plant, and Equipment, net. 381,000 Net income... Prepaid Expenses. Patent, net. . Common Shares, 100,000 shares authorized, 33,000 shares issued and outstanding. 165,000 Preferred Shares, $0.15, 25,000 shares authorized, 6,000 shares issued . . 140,750 15,500 Common Shareholders' 37,000 Equity, Dec. 31, 2019 . 520,000 30,000