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Consider the financial information for Company C2 and Company D2: Criteria Company C2 Company D2 Net Income $1,500,000 $1,250,000 Total Assets $15,000,000 $12,500,000 Total Liabilities

Consider the financial information for Company C2 and Company D2:

Criteria

Company C2

Company D2

Net Income

$1,500,000

$1,250,000

Total Assets

$15,000,000

$12,500,000

Total Liabilities

$9,000,000

$7,200,000

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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