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International Genetic Technologies (In Gen) and The Resources Development Association (RDA) are companies involved in cutting- edge genetics research. Selected financial data for (In Gen)
International Genetic Technologies (In Gen) and The Resources Development Association (RDA) are companies involved in cutting- edge genetics research. Selected financial data for (In Gen) and (RDA) are provided below: (Round your answers to 1 decimal place. Enter your answers in millions (i.e., $10,100,000 should be entered as 10.1).) ($ in millions) Net sales Net income Operating cash flows Total assets, beginning Total assets, ending InGen $175,245 10,515 13,839 253,400 135,865 RDA $138,916 21,030 20,426 193,452 137,840 Required: 1. Calculate the return on assets for both companies. (s in millions) Return on Assets = Return on Assets InGen RDA 2. Calculate the cash return on assets for both companies. ($ in millions) Cash Return on Assets = Cash Return on Assets InGen RDA 3. Calculate the cash flow to sales ratio and the asset turnover ratio for both companies. ($ in millions) Cash Flow to Sales Cash Flow to Sales InGen RDA Asset Turnover = Asset Turnover times InGen RDA times 4. In general, which company has the more favorable ratios? International Genetic Technologies (InGen) Resources Development Association (RDA)
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