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.

Required:
1. Determine the return on shareholders' equity for 2018.
2. What does the ratio measure?

Comparative Balance Sheets (S in thousands) December 31 2018 2017 Assets: $ 50 100 50 200 600 $1,000 $ 40 120 40 140 550 $890 Cash Property, plant, and equipment (net) Liabilities and Shareholders' Equity: Current liabilities Bonds payable Paid-in capital Retained earnings 240 160 400 200 $1,000 $210 160 400 120 $890