Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Required 4 Calculate the return on assets for both companies. InGen RDA ($ in millions) Return on Assets Numerator/Denominator Amounts II < Required 1 Required 2 > 0 0
Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Required 4 Calculate the return on assets for both companies. InGen RDA ($ in millions) Return on Assets Numerator/Denominator Amounts II < Required 1 Required 2 > 0 0
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., $10,100,000 should be entered as 10.1).)
Transcribed Image Text:Complete this question by entering your answers in the tabs below.
Required 1 Required 2
Required 3
Required 4
Calculate the return on assets for both companies.
InGen
RDA
($ in millions)
Return on Assets
Numerator/Denominator
Amounts
II
< Required 1
Required 2 >
0
0
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