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nternational 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 InGen $127.245 RDA $106.916

nternational 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 InGen $127.245 RDA $106.916

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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Required 1 Required 2 Required 3 Required 4 Calculate the cash flow to sales ratio and the asset turnover ratio for both companies. ($ in millions) Cash Flow to Sales InGen RDA InGen RDA Numerator/Denominator Operating cash flows Net sales Operating cash flows Net sales Asset Turnover Numerator/Denominator Net sales Average total assets Net sales Average total assets < Required 2 = = = $ $ $ $ $ $ $ $ Amounts 12,639.0 127,245.0 19,846.0 106,916.0 Amounts 127,245.0 124,503.0 106,916.0 113,452.0 Required 4 > 9.9% 18.6% 1.0 times 0.9 times
Transcribed Image Text:Required 1 Required 2 Required 3 Required 4 Calculate the cash flow to sales ratio and the asset turnover ratio for both companies. ($ in millions) Cash Flow to Sales InGen RDA InGen RDA Numerator/Denominator Operating cash flows Net sales Operating cash flows Net sales Asset Turnover Numerator/Denominator Net sales Average total assets Net sales Average total assets < Required 2 = = = $ $ $ $ $ $ $ $ Amounts 12,639.0 127,245.0 19,846.0 106,916.0 Amounts 127,245.0 124,503.0 106,916.0 113,452.0 Required 4 > 9.9% 18.6% 1.0 times 0.9 times
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 $127,245 7,074 12,639 124,503 129,517 RDA $106,916 15,855 19,846 113,452 116,433 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., $10,100,000 should be entered as 10.1).)
Transcribed Image Text:International Genetic Technologies (InGen) and The Resources Development Association (RDA) are companies involved in cutting- edge genetics research. Selected financial data for (InGen) and (RDA) are provided below: ($ in millions) Net sales Net income Operating cash flows Total assets, beginning Total assets, ending InGen $127,245 7,074 12,639 124,503 129,517 RDA $106,916 15,855 19,846 113,452 116,433 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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