Question
Consider the financial information for Company A1 and Company B1: Criteria Company A1 Company B1 Net Income $580,000 $490,000 Total Assets $5,800,000 $4,900,000 Total Liabilities
Consider the financial information for Company A1 and Company B1:
Criteria | Company A1 | Company B1 |
Net Income | $580,000 | $490,000 |
Total Assets | $5,800,000 | $4,900,000 |
Total Liabilities | $2,800,000 | $2,300,000 |
a) Calculate the return on assets (ROA) for both companies. b) Analyze which company appears to be more efficient in generating profits relative to its assets.
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Financial Accounting
Authors: Jeffrey Waybright, Liang Hsuan Chen, Rhonda Pyper
1st Canadian Edition
9780132147538, 132889714, 013214753X , 978-0132889711
