Question
Given the financial data for Company A6 and Company B6: Criteria Company A6 Company B6 Net Income $6,600,000 $6,300,000 Total Assets $66,000,000 $63,000,000 Total Liabilities
Given the financial data for Company A6 and Company B6:
Criteria | Company A6 | Company B6 |
Net Income | $6,600,000 | $6,300,000 |
Total Assets | $66,000,000 | $63,000,000 |
Total Liabilities | $59,000,000 | $57,000,000 |
Calculate 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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Managerial Accounting
Authors: James Jiambalvo
4th edition
9780470546888, 9780470333341, 470546883, 470333340, 978-0470578797
