Question
Given the financial data for Company U5 and Company V5: Criteria Company U5 Company V5 Net Income $6,300,000 $6,000,000 Total Assets $63,000,000 $60,000,000 Total Liabilities
Given the financial data for Company U5 and Company V5:
Criteria | Company U5 | Company V5 |
Net Income | $6,300,000 | $6,000,000 |
Total Assets | $63,000,000 | $60,000,000 |
Total Liabilities | $56,000,000 | $54,000,000 |
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
978-0470578797
