3. Asset management ratios Asset mansgement ratios are used to measure haw effectively a firm manages its assets, by relating the amount a firm has imested in a particular type of asset (ar group of assets) to the amount af revenues the asset is generating. Examples of asset mansgement ratias include the average collectian period (also called the days sales outstanding ratio), the inventory turnaver ratio, the fixed asset turnover ratio, and the tatal asset turnover ratio. Consider the following case: Crawfard Construction has a cuick ratia of 2.00x, \$32,175 in cash, \$17,875 in accounts receivable, some inventary, total current assets af $71,500, and total current listilities af $25,025. The company reported annual cost of goods sold of $300, DOD in the most recent annusil report. Wver the past year, how often did Crawford Construction sell and replace its inventary? 15.39x 13.99x 2.86x 8.01 The inventary turnover ratid across companies in the construction industry is 15.39x. Eased an this information, which of the faliawing statements is true for Crawford Canstruction? Crawford Construction is haiding less imentary per dollar af sales campared to the industry average. Crawford Construction is halding more inventary per dollar af sales compared to the industry average. You are analyzing twa companies that manufacture electronic toys-Like Games ine. and Cur Play Inc. Like Games was launched eight years ago, whereas Dur Play is a relatively new company that has been in operation for anly the past two years. Hawever, both companies have an equal market share with sales of $300,000 esch. You've colected company data to compare Llwe Games and Our Play. Last year, the average sales far all industry competitors was $765,000. As an analyst, you want to make comments on the expected perfarmance af these two companies in the caming year. You've colected data from the companies' financial statements. This information is listed as follows: (Note: Assume there are 365 days in a year)