Question 2: why the ending equity is 222000 P10-82A. 3, 6: a measuringshare. In1. Analyze each tramnation of Montana, Inc.equity Therease 415500ho effoctprofitability) The following accounts and related balances or Pelican Designers, Inc a6 eDecember 31, 20X6, are arranged in no particular order.LO 3 6Interest expense.$ 15,600$55,00034,000Property, plant andequipment, netOrdinary share, $2 par,600,000 shares authorized,......******ysAccounts receivable, net.Paid-in capital in excessof par-ordinary00020,00024,000Accrued liabilities.Long-term note payableInventory..000'66116,000 shares issued...Prepaid expenses .....00000093,000Dividends payable .Retained earnings.nh00 0- 24700 237000 Accounts payable.24000-2000026310 Trademarks, net.m000'9Ørdinary shareholders'equity, December 31, 20X6..Net income.Rec000'000Total assets,32,0001.2.Preference share, $0.5o, dividendno-par, 11,000 sharesauthorized and issued.December 31, 20X6493,000Treasury share,49,70021,000 shares at costGoodwill.0000Bai000Hawi-Requirements20th1. Prepare Pelican's classified Balance Sheet in the account format at December 31, 20X6.22. Compute rate of return on ordinary shareholders' equity for the year ended December 31,3. Does the ROE suggest strength or weakness? Give your reason.

Shareholder's equity is the net worth of the shareholders that company is liable to pay off.

nation of Montana, Inc. hability no effock profitability) The following accounts and related balances of Pelican Designers, Inc oning December 31, 20X6, are arranged in no particular order. P10-82A. (Learning Objectives 3, 6: Preparing a corporation's Balance Sheet; measuring Interest expense.. $ 15,600 $55,000 000'tE Property, plant and Cash.. ... Accounts receivable, net..... Paid-in capital in excess of par-ordinary. Accrued liabilities... equipment, net. 000'07 Ordinary share, $2 par, 364,000 ...... 600,000 shares authorized, 000' 000'66 000'£6 Prepaid expenses. 000'9 Ørdinary shareholders' equity, December 31, 20X6.. 116,000 shares issued... Long-term note payable. Inventory. Dividends payable. Retained earnings... 23200 Accounts payable. 2650 Trademarks, net.. Preference share, $0.50, dicīdend no-par, 11,000 shares authorized and issued.. 000' 222,000 32,000 ***.......... Net income.. Total assets, 136,000 4,000 December 31, 20X6. 493,000 ............... Treasury share, 21,000 shares at cost...... 29,700 Goodwill. 000 000 310X Requirements / 1. Prepare Pelican's classified Balance Sheet in the account format at December 31, 20X6. 22. Compute rate of return on ordinary shareholders' equity for the year ended December 31, 20X6. 3. Does the ROE suggest strength or weakness? Give your reason.

8th Edition

ISBN:9781305961883

Author:Carl Warren

Publisher:Carl Warren

Chapter9: Metric-analysis Of Financial Statements

Section: Chapter Questions

Problem 9.17E: Profitability metrics The following selected data were taken from the financial statements of The...