Question
Considering the financial information for Company Q3 and Company R3: Criteria Company Q3 Company R3 Net Income $3,500,000 $3,200,000 Total Assets $35,000,000 $32,000,000 Total Liabilities
Considering the financial information for Company Q3 and Company R3:
Criteria | Company Q3 | Company R3 |
Net Income | $3,500,000 | $3,200,000 |
Total Assets | $35,000,000 | $32,000,000 |
Total Liabilities | $28,000,000 | $26,000,000 |
Calculate the return on assets (ROA) for both companies and discuss which company seems 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
