Question
Consider the financial information for Company Q1 and Company R1: Criteria Company Q1 Company R1 Net Income $950,000 $820,000 Total Assets $9,500,000 $8,200,000 Total Liabilities
Consider the financial information for Company Q1 and Company R1:
Criteria | Company Q1 | Company R1 |
Net Income | $950,000 | $820,000 |
Total Assets | $9,500,000 | $8,200,000 |
Total Liabilities | $5,800,000 | $5,000,000 |
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
