Question
The financial data for Company G1 and Company H1 is provided below: Criteria Company G1 Company H1 Net Income $700,000 $600,000 Total Assets $7,000,000 $6,000,000
The financial data for Company G1 and Company H1 is provided below:
Criteria | Company G1 | Company H1 |
Net Income | $700,000 | $600,000 |
Total Assets | $7,000,000 | $6,000,000 |
Total Liabilities | $4,000,000 | $3,200,000 |
a) Calculate the return on assets (ROA) for both companies. b) Analyze which company appears to be more efficient in generating profits relative to its assets.
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Financial and Managerial Accounting
Authors: Belverd E. Needles, Marian Powers, Susan V. Crosson
9th edition
1439037809, 978-1439037805
