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E 18-24 (Profitability ratio) Comparative balance sheets for Softech Canvas Goods for 2021 and 2020 are shown below. Softech pays no dividends and instead reinvests
E 18-24 (Profitability ratio) 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 (S in thousands) Assets: Cash Accounts receivable Short-term investments Inventory Property, plant, and equipment (net) Liabilities and Shareholders' Equity: Current liabilities Bonds payable Paid-in capital December 31 2021 2020 $ 50 100 50 200 600 $1,000 $ 240 160 400 200 $1,000 8 $ 40 $890 Required: Retained earnings 1. Determine the return on shareholders' equity for 2021. 2. What does the ratio measure
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