Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

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

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 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) InGen RDA
Net sales $ 127,245 $ 106,916
Net income 7,074 15,855
Operating cash flows 12,639 19,846
Total assets, beginning 124,503 113,452
Total assets, ending 129,517 116,433

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. In general, which company has the more favorable ratios?

  • International Genetic Technologies (InGen)

  • Resources Development Association (RDA)

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access with AI-Powered Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Students also viewed these Accounting questions