Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

1. options for a: high or low options for b:BrainGames Inc. or IntelliGames Inc. options for c:BrainGames Inc. or IntelliGames Inc 2. options for a:lower

image text in transcribed

image text in transcribed

image text in transcribed

1. options for a: high or low

options for b:BrainGames Inc. or IntelliGames Inc.

options for c:BrainGames Inc. or IntelliGames Inc

2. options for a:lower or higher

options for b:lower or greater

3. options for a: 0.80 or 1.05x

options for b: higher or lower

9. Asset management ratios Which of the following is not an asset management ratio? The average collection period O A days sales outstanding ratio O A price-earnings ratio A inventory turnover ratio Johnny Appleseed Brewing Company (JABC) has a quick ratio of 2.00; $38,250 in cash; $21,250 in accounts receivable; some inventory; total current assets of $85,000; and total current liabilities of $29,750. In its most recent annual report, JABC reported annual sales of $100,000 and a cost of goods sold equal to 65% of annual sales. How many times is Johnny Appleseed Brewing Company (JABC) selling and replacing its inventory? O 3.92x O 0.35x O 2.805x O 2.55x The inventory turnover ratio across companies in JABC's industry is 2.17. Based on this information, which of the following statements is true for Johnny Appleseed Brewing Company (JABC)? O JABC is holding less inventory per dollar of COGS compared to the industry average. O Johnny Appleseed Brewing Company (JABC) is holding more inventory per dollar of COGS compared to the industry average. You are analyzing two companies that manufacture electronic toys-IntelliGames Inc. and BrainGames Inc. IntelliGames was launched eight years ago, whereas BrainGames 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 $100,000 each. You've gathered up company data to compare IntelliGames and BrainGames. For the same period, the average sales for industry competitors was $255,000. 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: Data Collected (in dollars) IntelliGames Inc. BrainGames Inc. Industry Average Accounts receivables $3,900 $2,875 $2,700 216,750 Net fixed assets 55,000 80,000 Total assets 95,000 125,000 234,600 Using the preceding information, 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. BrainGames Inc.'s fixed-asset turnover ratio is than that of IntelliGames Inc. This could be because BrainGames 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

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

High Frequency Financial Econometrics

Authors: Yacine Aït Sahalia, Jean Jacod

1st Edition

0691161437, 978-0691161433

More Books

Students also viewed these Finance questions