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The financial data for Company Q2 and Company R2 is provided below: Criteria Company Q2 Company R2 Net Income $2,200,000 $1,900,000 Total Assets $22,000,000 $19,000,000
- The financial data for Company Q2 and Company R2 is provided below:
Criteria | Company Q2 | Company R2 |
Net Income | $2,200,000 | $1,900,000 |
Total Assets | $22,000,000 | $19,000,000 |
Total Liabilities | $15,000,000 | $13,000,000 |
- 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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Advanced Accounting
Authors: Debra C. Jeter, Paul K. Chaney
8th Edition
111979465X, 9781119794653
