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 salesNet incomeOperating cash flowsTotal assets, beginningTotal assets, endingInGen$127,2457,07412,639124,503129,517RDA$106,91615,85519,846113,452116,433Required: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., $10,100,000 should be enteredas 10.1).) Required 1 Required 2 Required 3 Required 4Calculate the cash flow to sales ratio and the asset turnover ratio for both companies.($ in millions)Cash Flow to SalesInGenRDAInGenRDANumerator/DenominatorOperating cash flowsNet salesOperating cash flowsNet salesAsset TurnoverNumerator/DenominatorNet salesAverage total assetsNet salesAverage total assets< Required 2===$$$$$$$$Amounts12,639.0127,245.019,846.0106,916.0Amounts127,245.0124,503.0106,916.0113,452.0Required 4>9.9%18.6%1.0 times0.9 times

Ratio analysis is one the most important segments of managerial accounting as it helps to evaluate…

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?

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?

Essentials of Business Analytics (MindTap Course List)

2nd Edition

ISBN:9781305627734

Author:Jeffrey D. Camm, James J. Cochran, Michael J. Fry, Jeffrey W. Ohlmann, David R. Anderson

Publisher:Jeffrey D. Camm, James J. Cochran, Michael J. Fry, Jeffrey W. Ohlmann, David R. Anderson

Chapter3: Data Visualization

Section: Chapter Questions

Problem 10P: The file Fortune500 contains data for profits and market capitalizations from a recent sample of...

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