Question
Comparative balance sheets for Softech Canvas Goods for 2016 and 2015 are shown below. Softech pays no dividends, and instead reinvests all earnings for future
Comparative balance sheets for Softech Canvas Goods for 2016 and 2015 are shown below. Softech pays no dividends, and instead reinvests all earnings for future growth.
Comparative Balance Sheets ($ in 000s)
December 31
2016 2015
Assets:
Cash $ 104 $ 76
Accounts receivable 190 210
Short-term investments 86 76
Inventory 380 248
Property, plant, and equipment (net) 960 820
$ 1,720 $ 1,430
Liabilities and Shareholders Equity:
Current liabilities $ 420 $ 300
Bonds payable 250 250
Paid-in capital 670 670
Retained earnings 380 210
$ 1,720 $ 1,430
Required: 1. Determine the return on shareholders equity for 2016. (Round your answer to 2 decimal places.)
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