The accounts and related balances of Labelle Systems Ltd. are arranged in no particular order:

Required
1. Prepare the company's classified balance sheet in report format at June 30, 2017.
2. Compute the rate of return on total assets and the rate of return on common shareholders' equity for the year ended June 30, 2017.
3. Do these rates of return suggest strength or weakness? Give your reason.

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Preferred Shares, $0.20 $200,000 25,000 issued and outstanding..... 29,500 Total assets, June 30, 201...... 410,000 7,200 Equity, June 30, 2016 Net income 10,000 shares authorized, 15,000 Interest Expense 52,500 Property, Plant, and Accounts Receivable, net. Accrued Liabilities.. Long-term Note Payable... Inventory Dividends Payable1 Retained Earnings Accounts Payable.36,000 30,000 Equipment, net 300,000 8,500 Common Shares, 500,000 93,500 shares authorized; 272,000 10,500 shares issued and outstanding..300,000 ? Prepaid Expenses 12,000