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 20212020Assets: 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.

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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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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.

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