Question
Given the financial data for Company O6 and Company P6: Criteria Company O6 Company P6 Net Income $7,300,000 $7,000,000 Total Assets $73,000,000 $70,000,000 Total Liabilities
Given the financial data for Company O6 and Company P6:
Criteria | Company O6 | Company P6 |
Net Income | $7,300,000 | $7,000,000 |
Total Assets | $73,000,000 | $70,000,000 |
Total Liabilities | $66,000,000 | $64,000,000 |
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
