1.
Concept Introduction:
To calculate:the return on total assets for the current year for both the companies.
2.
Concept Introduction:
Return on assets/ investment is a profitability ratio that represents the percentage return on the investment made. It is calculated by dividing the Net Income by the Average total assets. The formulas to calculate the ROI are as follows:
To indicate:the company which has used its assets more efficiently in the current year.
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Loose Leaf for Financial Accounting: Information for Decisions
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