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CC 306 Week 4 18-24 Softech E 18–24 – Softech Canvas Goods – Profitability ratio ● LO1 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. Required: 1. Determine the return on shareholders’ equity for 2011. 2. What does the ratio measure?

CC 306 Week 4 18-24 Softech

E 18–24 – Softech Canvas Goods – Profitability ratio ● LO1
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.
Required:
1. Determine the return on shareholders’ equity for 2011.
2. What does the ratio measure?

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