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Consider the financial information for Company O2 and Company P2: Criteria Company O2 Company P2 Net Income $2,100,000 $1,800,000 Total Assets $21,000,000 $18,000,000 Total Liabilities
- Consider the financial information for Company O2 and Company P2:
Criteria | Company O2 | Company P2 |
Net Income | $2,100,000 | $1,800,000 |
Total Assets | $21,000,000 | $18,000,000 |
Total Liabilities | $14,000,000 | $12,000,000 |
- 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
