Question
Given the financial data for Company U4 and Company V4: Criteria Company U4 Company V4 Net Income $5,000,000 $4,700,000 Total Assets $50,000,000 $47,000,000 Total Liabilities
Given the financial data for Company U4 and Company V4:
Criteria | Company U4 | Company V4 |
Net Income | $5,000,000 | $4,700,000 |
Total Assets | $50,000,000 | $47,000,000 |
Total Liabilities | $43,000,000 | $41,000,000 |
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
