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November 29, 2021

E 18?24 – Softech Canvas Goods – Profitability ratio? Comparative balance sheets for Softech Canvas Goods for 2011 and 20

Business & Finance /Accounting

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E 18–24 – Softech Canvas Goods – 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.

Required:

1. Determine the return on shareholders’ equity for 2011.

2. What does the ratio measure?

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