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Given the financial data for Company A3 and Company B3: Criteria Company A3 Company B3 Net Income $2,700,000 $2,400,000 Total Assets $27,000,000 $24,000,000 Total Liabilities

Given the financial data for Company A3 and Company B3:

Criteria

Company A3

Company B3

Net Income

$2,700,000

$2,400,000

Total Assets

$27,000,000

$24,000,000

Total Liabilities

$20,000,000

$18,000,000

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

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