Question
Reviewing the financial data for Company S3 and Company T3: Criteria Company S3 Company T3 Net Income $3,600,000 $3,300,000 Total Assets $36,000,000 $33,000,000 Total Liabilities
Reviewing the financial data for Company S3 and Company T3:
Criteria | Company S3 | Company T3 |
Net Income | $3,600,000 | $3,300,000 |
Total Assets | $36,000,000 | $33,000,000 |
Total Liabilities | $29,000,000 | $27,000,000 |
Compute the return on assets (ROA) for both companies and discuss which company seems more efficient in generating profits relative to its assets.
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Managerial Accounting
Authors: James Jiambalvo
4th edition
978-0470578797
