1. low/high

intelligame inc. /braingames inc

intelligame/braingames

2. lower/higher

lower/greater

3. 1.05x/0.80x

higher/lower

You are analyzing two companies that manufacture electronic toys-IntelliGames Inc. and Brain Games Inc. Intelligames was launched eight years ag whereas Brain Games is a relatively new company that has only been in operation for the past two years. However, both companies have an equal market share with sales of $300,000 each. You've gathered up company data to compare IntelliGames and Brain Games. For the same period, the average sales for industry competitors was $765,000. As an analyst, you want to make comments on the expected performance of these two companies in the coming year. You've collected data from the companies' financial statements, and the information follows: Accounts receivables Net fixed assets Total assets Data Collected (in dollars) IntelliGames Inc. Brain Games Inc. $8,100 $11,700 165,000 240,000 285,000 375,000 Industry Average $8,625 650,250 703,800 Use the preceding information to complete the following statements. 1. A days sales outstanding, or average collection period, represents an efficient credit and collection policy. Between the two companies is collecting cash from its customers faster than ; but both companies are collecting their receivables less quickly than the industry average. 2. Brain Games Inc.'s fixed asset turnover ratio is than that of IntelliGames Inc. This could be because Brain Games is a relatively new company, such that the acquisition costs and book values of its fixed assets is than the acquisition costs and book values of IntelliGames's net fixed assets. than the industry's average total asset turnover ratio. In general, a 3. IntelliGames' total asset turnover ratio is which is higher total asset turnover ratio indicates greater efficiency