Question
Consider the financial information for Company U1 and Company V1: Criteria Company U1 Company V1 Net Income $1,100,000 $920,000 Total Assets $11,000,000 $9,200,000 Total Liabilities
Consider the financial information for Company U1 and Company V1:
Criteria | Company U1 | Company V1 |
Net Income | $1,100,000 | $920,000 |
Total Assets | $11,000,000 | $9,200,000 |
Total Liabilities | $6,500,000 | $5,600,000 |
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
