Question
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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Financial Reporting And Analysis
Authors: Lawrence Revsine, Daniel Collins
4th Edition
0073527092, 978-0073527093
