International Genetic Technologies (InGen) and The Resources Development Association (RDA) are companies involved in cutting-edge genetics research. Selected financial data for (InGen) and (RDA) are as follows: (Enter your answers in millions rounded to 1 decimal place. (i.e., $5,500,000 should be entered as 5.5).)

($ in millions)	InGen		RDA
Net sales	$	172,245	$	136,916
Net income		10,335		20,670
Operating cash flows		15,050		19,635
Total assets, beginning		248,400		188,452
Total assets, ending		117,661		151,433

Required:

1. Calculate the return on assets for both companies.

2. Calculate the cash return on assets for both companies.

3. Calculate the cash flow to sales ratio and the asset turnover ratio for both companies.

4. Which company has the more favorable ratios?

	International Genetic Technologies (InGen)
	Resources Development Association (RDA)

References