New Corporation an up$-$and$-$coming biotech company, provides the following selected financial statement information. Financial

information for Benchmark Corporation a well$-$established biotech company whose financial ratios represent the gold$-$standard in the

industry, is also provided.

Required:

Calculate the cash holdings ratio for both companies. What conclusions do you draw about the cash holdings of New

Corporation?

Calculate the investment$-$to$-$assets ratio for both companies. What conclusions do you draw about the New Corporation level of

investment?

Calculate the return on investments ratio for both companies. What conclusions do you draw about the riskiness of New

Corporation investments?