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9. Asset management ratios are used to measure how effectively a firm manages its assets, by relating the amount a firm has invested in a

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9. Asset management ratios are used to measure how effectively a firm manages its assets, by relating the amount a firm has invested in a particular type of asset (or group of assets) to the amount of revenues the asset is generating. Examples of asset management the average collection period (also called the days sales outstanding ratio), the inventory turnover ratio, the fxed asset turnover ratio, and the ratios indlude total asset turnover ratio. Consider the following case: Graham Pharmaceuticals has a quick ratio of 2.cox, $32,175 in cash, $17,875 in accounts receivable, some inventory, total curr $71,500, and total current labilities of $25,025. The company reported annual cost of goods sold of $200,000 in the most recent annual report. Over the past year, how often did Graham Pharmaceuticals sell and replace its inventory? O 8.01 x O 10.25 x O 2.86 x O 9.32 x The inventory turnover ratio across companies in the pharmaceutical industry is 7.92x. Based on this statements is true for Graham Pharmaceuticals? O Graham Pharmaceuticals is holding more inventory per dollar of sales compared to the industry average. O Graham Pharmaceuticals is holding less inventory per dollar of sales compared to the industry average. You are analyzing two companies that manufacture electronic toys-Like Games Inc. and ago, whereas Our Play is a equal market share with sales of $200,000 each. You've collected sales for all industry competitors was $510,000. As an analyst, you want to make comments on the ex companiesin the coming year. You've Our Play Inc. Like Games was launched eight years relatively new company that has been in operation for only the past two years. However, both companies have an Play. Last year, the average company data to compare Like Games and Our financial statements. This information is listed as follows: Data Collected (in dollars) Accounts receivable Net fixed assets Total assets Like Games 5,400 110,000 190,000 Our Play 7,800 160,000 250,000 Industry Average 7,700 433,500 469,200

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