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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:

($ 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. Which company has the more favorable ratios?

(For all requirements, round your answers to 1 decimal place. Enter your answers in millions (i.e., $10,100,000 should be entered as 10.1).)

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