Comparative balance sheets for Softech Canvas Goods for 2018 and 2017 are shown below. Softech pays no dividends, and instead reinvests all earnings for future growth. Comparative Balance Sheets($ in 000s) December 31 20182017Assets: Cash$119 $86 Accounts receivable 215 235 Short-term investments 96 86 Inventory 430 278 Property, plant, and equipment (net) 1,060 895 $1,920 $1,580 Liabilities and Shareholders’ Equity: Current liabilities$470 $325 Bonds payable 275 275 Paid-in capital 745 745 Retained earnings 430 235 $1,920 $1,580 Required:1. Determine the return on shareholders’ equity for 2018. (Round your answer to 2 decimal places.)

The return on shareholders’ equity is the profitability ratio which measures the percentage of…

Answered: Determine the return on shareholders’…

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 2018 and 2017 are shown below. Softech pays no dividends, and instead reinvests all earnings for future growth.

Comparative Balance Sheets
($ in 000s)
	December 31
	2018	2017
Assets:
Cash	$	119	$	86
Accounts receivable		215		235
Short-term investments		96		86
Inventory		430		278
Property, plant, and equipment (net)		1,060		895
	$	1,920	$	1,580
Liabilities and Shareholders’ Equity:
Current liabilities	$	470	$	325
Bonds payable		275		275
Paid-in capital		745		745
Retained earnings		430		235
	$	1,920	$	1,580

Required:
1. Determine the return on shareholders’ equity for 2018. (Round your answer to 2 decimal places.)

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