Balance sheets for Johannesson&Johannesson for 2021 and 2020 are presented below. Johannesson&Johannesson reinvests all earnings...
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Accounting
Balance sheets for Johannesson&Johannesson for 2021 and 2020 are presented below. Johannesson&Johannesson reinvests all earnings for future growth (and hence pays no dividends).
Balance Sheets
($ in thousands)
December 31
2021
2020
Assets:
Cash
$
65
$
50
Accounts receivable
125
145
Short-term investments
60
50
Inventory
250
170
Property, plant, and equipment (net)
700
625
$
1,200
$
1,040
Liabilities and Shareholders Equity:
Current liabilities
$
290
$
235
Bonds payable
185
185
Paid-in capital
475
475
Retained earnings
250
145
$
1,200
$
1,040
Your task:1. Please calculate the return on shareholders equity for 2021. (Round your answer to 2 decimal places.)
return on shareholder' equity ____ %
Answer & Explanation
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