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0.88points eBook Print References Check my workCheck My Work button is now enabled Item 5 Item 5 0.88 points Comparative balance sheets for Softech Canvas
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Item 5
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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 | $ | 86 | $ | 64 | ||
| Accounts receivable | 160 | 180 | ||||
| Short-term investments | 74 | 64 | ||||
| Inventory | 320 | 212 | ||||
| Property, plant, and equipment (net) | 840 | 730 | ||||
| $ | 1,480 | $ | 1,250 | |||
| Liabilities and Shareholders Equity: | ||||||
| Current liabilities | $ | 360 | $ | 270 | ||
| Bonds payable | 220 | 220 | ||||
| Paid-in capital | 580 | 580 | ||||
| Retained earnings | 320 | 180 | ||||
| $ | 1,480 | $ | 1,250 | |||
Required: 1. Determine the return on shareholders equity for 2021. (Round your answer to 2 decimal places.)
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