Comparative balance sheets for Softech Canvas Goods for 2021 and 2020 are shown below. Softech pays no dividends and insteadreinvests all earnings for future growth.Comparative Balance Sheets( $ in thousands)December 3120212020Assets:Cash$89$66Accounts receivable165185Short-term investments7666330218InventoryProperty, plant, and equipment (net)860745$1,520$1,280Liabilities and Shareholders' Equity:Current liabilities$370$275Bonds payablePaid-in capitalRetained earnings225225595595330185$1,520$1,280Required:1. Determine the return on shareholders' equity for 2021. (Round your answer to 2 decimal places.)Return on shareholders' equity

Return on shareholder equity explains the relationship between the net income and the average…

Answered: all earnings for futu growth.…

Business

Accounting

all earnings for futu growth. Comparative Balar bous:

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Question

Comparative balance sheets for Softech Canvas Goods for 2021 and 2020 are shown below. Softech pays no dividends and instead
reinvests all earnings for future growth.
Comparative Balance Sheets
( $ in thousands)
December 31
2021
2020
Assets:
Cash
$
89
$
66
Accounts receivable
165
185
Short-term investments
76
66
330
218
Inventory
Property, plant, and equipment (net)
860
745
$1,520
$1,280
Liabilities and Shareholders' Equity:
Current liabilities
$
370
$
275
Bonds payable
Paid-in capital
Retained earnings
225
225
595
595
330
185
$1,520
$1,280
Required:
1. Determine the return on shareholders' equity for 2021. (Round your answer to 2 decimal places.)
Return on shareholders' equity

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