Acc306 Intermediate Accounting: E18-24 Comparative balance sheets for Softech Canvas Goods

Acc306 Intermediate Accounting Week 4 E18–24 Profitability ratio Comparative balance sheets for Softech Canvas Goods for 2011 and 2010 are shown below. Softech pays no dividends, and instead reinvests all earnings for future growth. Comparative Balance Sheets ($ in 000s) December 31 2011 2010 Assets: Cash 50 40 Accounts Receivable 100 120 Short-term receivable 50 40 Inventory 200 140 Property, plant and equipment (net) 600 550 Total Assets $1,000 $890 Liabilities and Shareholders' eQuity: Current Liabilities 240 210 Bonds Payable 160 160 Paid-in Capital 400 400 Retained Earnings 200 120 $1,000 $890 Required: 1.Determine the return on shareholders’ equity for 2011. 2. What does the ratio measure?
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