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160,400 146,800 18, 123,4 133,6 sets for both companies. on assets for both companies. sales ratio and the asset turnov hore favorable ratios?

160,400 146,800 18, 123,4 133,6 sets for both companies. on assets for both companies. sales ratio and the asset turnov hore favorable ratios?

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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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 provided below: ($ in millions) Net sales Net income Operating cash flows. Total assets, beginning Total assets, ending InGen $133,245 7,995 13,500 160,400 146,800 RDA $100,916 15,990 18,111 123,452 133,600 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., $10,100,000 should be entered as 10.1).)
Transcribed Image Text:International Genetic Technologies (InGen) and The Resources Development Association (RDA) are companies involved in cutting- edge genetics research. Selected financial data for (InGen) and (RDA) are provided below: ($ in millions) Net sales Net income Operating cash flows. Total assets, beginning Total assets, ending InGen $133,245 7,995 13,500 160,400 146,800 RDA $100,916 15,990 18,111 123,452 133,600 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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