Question
Consider the financial information for Company E1 and Company F1: Criteria Company E1 Company F1 Net Income $660,000 $550,000 Total Assets $6,600,000 $5,500,000 Total Liabilities
Consider the financial information for Company E1 and Company F1:
Criteria | Company E1 | Company F1 |
Net Income | $660,000 | $550,000 |
Total Assets | $6,600,000 | $5,500,000 |
Total Liabilities | $3,600,000 | $2,800,000 |
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 Using Financial Accounting Information
Authors: Charles H Gibson
12th Edition
978-1439080603
