Question
Considering the financial information for Company Q4 and Company R4: Criteria Company Q4 Company R4 Net Income $4,800,000 $4,500,000 Total Assets $48,000,000 $45,000,000 Total Liabilities
Considering the financial information for Company Q4 and Company R4:
Criteria | Company Q4 | Company R4 |
Net Income | $4,800,000 | $4,500,000 |
Total Assets | $48,000,000 | $45,000,000 |
Total Liabilities | $41,000,000 | $39,000,000 |
Compute the return on assets (ROA) for both companies and discuss 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
