International Genetic Technologies (InGen) and The Resources Development Association (RDA) are companies involved in cutting-edge...
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Accounting
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 as follows: (Enter your answers in millions rounded to 1 decimal place. (i.e., $5,500,000 should be entered as 5.5).)
($ in millions)
InGen
RDA
Net sales
$
172,245
$
136,916
Net income
10,335
20,670
Operating cash flows
15,050
19,635
Total assets, beginning
248,400
188,452
Total assets, ending
117,661
151,433
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?
International Genetic Technologies (InGen)
Resources Development Association (RDA)
References
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