Question
Given the financial data for Company O4 and Company P4: Criteria Company O4 Company P4 Net Income $4,700,000 $4,400,000 Total Assets $47,000,000 $44,000,000 Total Liabilities
Given the financial data for Company O4 and Company P4:
Criteria | Company O4 | Company P4 |
Net Income | $4,700,000 | $4,400,000 |
Total Assets | $47,000,000 | $44,000,000 |
Total Liabilities | $40,000,000 | $38,000,000 |
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
