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 $ 50 $ 40 Accounts receivable 100 120 Short-term investments 50 40 Inventory 200 140 Property, plant, and equipment (net) 600 550 $ 1,000 $ 890 Liabilities and Shareholders’ Equity: Current liabilities $ 240 $ 210 Bonds payable 160 160 Paid-in capital 400 400 Retained earnings 200 120 $ 1,000 $ 890 Required: 1. Determine the return on shareholders’ equity for 2021
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 $ 50 $ 40 Accounts receivable 100 120 Short-term investments 50 40 Inventory 200 140 Property, plant, and equipment (net) 600 550 $ 1,000 $ 890 Liabilities and Shareholders’ Equity: Current liabilities $ 240 $ 210 Bonds payable 160 160 Paid-in capital 400 400 Retained earnings 200 120 $ 1,000 $ 890 Required: 1. Determine the return on shareholders’ equity for 2021
Fundamentals of Financial Management (MindTap Course List)
15th Edition
ISBN:9781337395250
Author:Eugene F. Brigham, Joel F. Houston
Publisher:Eugene F. Brigham, Joel F. Houston
Chapter4: Analysis Of Financial Statements
Section: Chapter Questions
Problem 24P: Income Statement for Year Ended December 31, 2018 (Millions of Dollars) Net sales 795.0 Cost of...
Related questions
Question
Comparative
| Comparative Balance Sheets | ||||||
| ($ in thousands) | ||||||
| December 31 | ||||||
| 2021 | 2020 | |||||
| Assets: | ||||||
| Cash | $ | 50 | $ | 40 | ||
| 100 | 120 | |||||
| Short-term investments | 50 | 40 | ||||
| Inventory | 200 | 140 | ||||
| Property, plant, and equipment (net) | 600 | 550 | ||||
| $ | 1,000 | $ | 890 | |||
| Liabilities and Shareholders’ Equity: | ||||||
| Current liabilities | $ | 240 | $ | 210 | ||
| Bonds payable | 160 | 160 | ||||
| Paid-in capital | 400 | 400 | ||||
| 200 | 120 | |||||
| $ | 1,000 | $ | 890 | |||
Required:
1. Determine the return on shareholders’ equity for 2021.
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
This is a popular solution!
Trending now
This is a popular solution!
Step by step
Solved in 2 steps with 2 images
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.Recommended textbooks for you
Fundamentals of Financial Management (MindTap Cou…
Finance
ISBN:
9781337395250
Author:
Eugene F. Brigham, Joel F. Houston
Publisher:
Cengage Learning
Fundamentals Of Financial Management, Concise Edi…
Finance
ISBN:
9781337902571
Author:
Eugene F. Brigham, Joel F. Houston
Publisher:
Cengage Learning
Fundamentals of Financial Management (MindTap Cou…
Finance
ISBN:
9781337395250
Author:
Eugene F. Brigham, Joel F. Houston
Publisher:
Cengage Learning
Fundamentals Of Financial Management, Concise Edi…
Finance
ISBN:
9781337902571
Author:
Eugene F. Brigham, Joel F. Houston
Publisher:
Cengage Learning