Question
The financial data for Company S1 and Company T1 is provided below: Criteria Company S1 Company T1 Net Income $1,000,000 $850,000 Total Assets $10,000,000 $8,500,000
The financial data for Company S1 and Company T1 is provided below:
Criteria | Company S1 | Company T1 |
Net Income | $1,000,000 | $850,000 |
Total Assets | $10,000,000 | $8,500,000 |
Total Liabilities | $6,000,000 | $5,200,000 |
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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Advanced Accounting
Authors: Susan S. Hamlen
3rd Edition
1618531514, 978-1618531513
