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) InGen RDA InGen RDA Cash Flow to Sales Numerator/Denominator Amounts 0 0 Asset Turnover Numerator/Denominator Amounts 0 times < Required 2 Required 4 > 0 times
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) InGen RDA InGen RDA Cash Flow to Sales Numerator/Denominator Amounts 0 0 Asset Turnover Numerator/Denominator Amounts 0 times < Required 2 Required 4 > 0 times
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
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 |
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., $10,100,000 should be entered as 10.1).)
Transcribed Image Text:Required 1
Required 2
Required 3
Required 4
Calculate the cash flow to sales ratio and the asset turnover ratio for both companies.
($ in millions)
InGen
RDA
InGen
RDA
Cash Flow to Sales
Numerator/Denominator
Amounts
0
0
Asset Turnover
Numerator/Denominator
Amounts
0 times
< Required 2
Required 4
>
0 times
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