Return on Assets:
The return on assets is the return earned on the amount invested in assets. The return on assets is also known as the
Net Income:
Total earning of the company is called net income of the company. When the total expense deducted from the total revenue than the resultant is net income or ne loss.Net profit of the company is also called net profit. The investor can take a decision on the basis of net income of the company. If net income is more the investor attract to the company.
1.
To compute: Return on assets of C and P Company.
2.
To compare: The performance of companies on the basis of sales.
3.
To compare: The performance of companies on the basis of net income from its asset invested.
4.
To analyze: The Company for investment purpose.
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