Question
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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Managerial Accounting
Authors: James Jiambalvo
4th edition
9780470546888, 9780470333341, 470546883, 470333340, 978-0470578797
