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Consider the financial information for Company G2 and Company H2: Criteria Company G2 Company H2 Net Income $1,700,000 $1,400,000 Total Assets $17,000,000 $14,000,000 Total Liabilities
- Consider the financial information for Company G2 and Company H2:
Criteria | Company G2 | Company H2 |
Net Income | $1,700,000 | $1,400,000 |
Total Assets | $17,000,000 | $14,000,000 |
Total Liabilities | $10,000,000 | $8,200,000 |
- 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 Accounting
Authors: Jeffrey Waybright, Liang Hsuan Chen, Rhonda Pyper
1st Canadian Edition
9780132147538, 132889714, 013214753X , 978-0132889711
