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: (Round your answers to 1 decimal place. Enter your answers in millions (i.e., $10,100,000 should be entered as 10.1).) ($ in millions) InGen RDA Net sales $163,245 $130,916 Net income 9,795 19,590 Operating cash flows 13,539 20,281 Total assets, beginning 233,400 173,452 Total assets, ending 134,278 144,433 Required: 1. Calculate the return on assets for both companies. ($ in millions) Return on Assets = Return on Assets InGen % RDA % 2. Calculate the cash return on assets for both companies. ($ in millions) Cash Return on Assets = Cash Return on Assets InGen % RDA % 3. Calculate the cash flow to sales ratio and the asset turnover ratio for both companies. ($ in millions) Cash Flow to Sales = Cash Flow to Sales InGen % RDA % Asset Turnover = Asset Turnover InGen times RDA 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: (Round your answers to 1 decimal place. Enter your answers in millions (i.e., $10,100,000 should be entered as 10.1).) ($ in millions) InGen RDA Net sales $163,245 $130,916 Net income 9,795 19,590 Operating cash flows 13,539 20,281 Total assets, beginning 233,400 173,452 Total assets, ending 134,278 144,433 Required: 1. Calculate the return on assets for both companies. ($ in millions) Return on Assets = Return on Assets InGen % RDA % 2. Calculate the cash return on assets for both companies. ($ in millions) Cash Return on Assets = Cash Return on Assets InGen % RDA % 3. Calculate the cash flow to sales ratio and the asset turnover ratio for both companies. ($ in millions) Cash Flow to Sales = Cash Flow to Sales InGen % RDA % Asset Turnover = Asset Turnover InGen times RDA times
Intermediate Financial Management (MindTap Course List)
13th Edition
ISBN:9781337395083
Author:Eugene F. Brigham, Phillip R. Daves
Publisher:Eugene F. Brigham, Phillip R. Daves
Chapter8: Basic Stock Valuation
Section: Chapter Questions
Problem 9MC
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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: (Round your answers to 1 decimal place. Enter your answers in millions (i.e., $10,100,000 should be entered as 10.1).)
($ in millions) | InGen | RDA |
Net sales | $163,245 | $130,916 |
Net income | 9,795 | 19,590 |
Operating cash flows | 13,539 | 20,281 |
Total assets, beginning | 233,400 | 173,452 |
Total assets, ending | 134,278 | 144,433 |
Required:
1. Calculate the return on assets for both companies.
|
2. Calculate the cash return on assets for both companies.
|
3. Calculate the cash flow to sales ratio and the asset turnover ratio for both companies.
($ in millions) | ||||||
Cash Flow to Sales | ||||||
= | Cash Flow to Sales | |||||
InGen | % | |||||
RDA | % | |||||
Asset Turnover | ||||||
= | Asset Turnover | |||||
InGen | times | |||||
RDA | times |
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