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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
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 | $ | 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 2021. (Round your answer to 2 decimal places.)
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