Determine the return on shareholders’ equity for 2018
Financial Accounting: The Impact on Decision Makers
10th Edition
ISBN:9781305654174
Author:Gary A. Porter, Curtis L. Norton
Publisher:Gary A. Porter, Curtis L. Norton
Chapter13: Financial Statement Analysis
Section: Chapter Questions
Problem 13.10E
Related questions
Question
Comparative balance sheets for Softech Canvas Goods for 2018 and 2017 are shown below. Softech pays no dividends, and instead reinvests all earnings for future growth.
Comparative Balance Sheets | ||||||
($ in 000s) | ||||||
December 31 | ||||||
2018 | 2017 | |||||
Assets: | ||||||
Cash | $ | 119 | $ | 86 | ||
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 | ||||
430 | 235 | |||||
$ | 1,920 | $ | 1,580 | |||
Required:
1. Determine the return on shareholders’ equity for 2018. (Round your answer to 2 decimal places.)
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