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Considering the financial information for Company K6 and Company L6: Criteria Company K6 Company L6 Net Income $7,100,000 $6,800,000 Total Assets $71,000,000 $68,000,000 Total Liabilities

Considering the financial information for Company K6 and Company L6:

Criteria

Company K6

Company L6

Net Income

$7,100,000

$6,800,000

Total Assets

$71,000,000

$68,000,000

Total Liabilities

$64,000,000

$62,000,000

Compute the return on assets (ROA) for both companies and determine which company appears to be more efficient in generating profits relative to its assets.

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