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.

Required:

1. Determine the return on shareholders? equity for 2021.

2. What does the ratio measure?

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Comparative Balance Sheets ($ in thousands) December 31 2021 2020 Assets: $ 50 $ 40 Cash Accounts receivable 100 120 Short-term investments 50 40 Inventory Property, plant, and equipment (net) 200 140 600 550 $1,000 $890 Liabilities and Shareholders' Equity: $ 240 Current liabilities Bonds payable Paid-in capital Retained earnings $210 160 160 400 400 200 120 $890 $1,000