P8-4 New Corp, an up-and-coming biotech company, provides the following selected financial statement information. Financial information...

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P8-4 New Corp, an up-and-coming biotech company, provides the following selected financial statement information. Financial information for Benchmark Corp, a well-established biotech company whose financial ratios represent the gold-standard in the industry, is also provided. New Corp Benchmark Corp 2024 2023 2024 2023 Cash and cash equivalents $ 350,656 $ 238,446 $ 4,207,872 Short-term investments 490,545 353,192 9,320,355 $ 3,997,478 8,947,541 Accounts receivable 32,588 23,137 782,112 766,470 Property, plant and equip. 852,459 588,197 18,754,098 17,816,393 Intangible assets 2,565,875 1,796,113 41,054,000 39,822,380 Long-term investments 1,545,856 1,082,099 46,375,680 45,448,166 Total asset 5,837,979 4,081,184 120,494,117 116,798,428 Total liabilities 875,697 571,366 45,787,764 43,215,419 Total stockholders' equity 4,962,282 3,509,819 74,706,353 73,583,010 Net sales $7,865,315 $5,112,455 $245,253,656 $240,348,583 Operating income Interest expense Investment income 1,179,797 39,406 81,456 1,610,423 26,569 88,291,316 45,929 1,373,633 1,670,881 84,122,004 1,361,286 1,523,080 Required: 1. Calculate the cash holdings ratio for both companies. What conclusions do you draw about the cash holdings of New Corp? 2. Calculate the investment-to-assets ratio for both companies. What conclusions do you draw about the New Corp's level of investment? 3. Calculate the return on investments ratio for both companies. What conclusions do you draw about the riskiness of New Corp's investments? P8-4 New Corp, an up-and-coming biotech company, provides the following selected financial statement information. Financial information for Benchmark Corp, a well-established biotech company whose financial ratios represent the gold-standard in the industry, is also provided. New Corp Benchmark Corp 2024 2023 2024 2023 Cash and cash equivalents $ 350,656 $ 238,446 $ 4,207,872 Short-term investments 490,545 353,192 9,320,355 $ 3,997,478 8,947,541 Accounts receivable 32,588 23,137 782,112 766,470 Property, plant and equip. 852,459 588,197 18,754,098 17,816,393 Intangible assets 2,565,875 1,796,113 41,054,000 39,822,380 Long-term investments 1,545,856 1,082,099 46,375,680 45,448,166 Total asset 5,837,979 4,081,184 120,494,117 116,798,428 Total liabilities 875,697 571,366 45,787,764 43,215,419 Total stockholders' equity 4,962,282 3,509,819 74,706,353 73,583,010 Net sales $7,865,315 $5,112,455 $245,253,656 $240,348,583 Operating income Interest expense Investment income 1,179,797 39,406 81,456 1,610,423 26,569 88,291,316 45,929 1,373,633 1,670,881 84,122,004 1,361,286 1,523,080 Required: 1. Calculate the cash holdings ratio for both companies. What conclusions do you draw about the cash holdings of New Corp? 2. Calculate the investment-to-assets ratio for both companies. What conclusions do you draw about the New Corp's level of investment? 3. Calculate the return on investments ratio for both companies. What conclusions do you draw about the riskiness of New Corp's investments?