9. Asset management ratios Company stakeholders use asset management ratios to provide insights into: O The effective eness of management in providing ready funds to pay the firm's short-term financial obligations as they become due O The effectiveness of management in generating spendable sales dollars using the firm's current and fixed assets The firm's use of financ dividends associated with these funds ial capital, both borrowed and equity, to acquire assets, as well as the firm's ability to pay the interest and O The effectiveness of m anagement to generate before-tax and after-tax profits using the firm's assets Industrialization Automation Company (TAC) has a quick ratio of 2.00; $24.750 in cash; $13,750 in accounts receivable; some inventory; total current assets of $55,000; and total current liabilities of S 19,250. In its most recent annual report, IAC reported annual sales of $300,000 and a cost of goods sold equal to 65% of annual sales. How many times is industrialization Automation Company IAC) selling and replacing its inventory? O 13.002x O o.35x 011.82x O 18.18x You are analyzing two companies that manufacture electronic toys-IntelliGames Inc. and BrainGames Inc. IntelliGames was launched whereas BrainGames is a relatively new company that has only been in operation for the past two years. However, both companies have an equal eight years ago share with sales of $300,000 each, You've gathered up company data to compare InteliGames and BrainGames. For the same period, the average sales for industry competors was s765,000. As an anabyst, you want to make comments on the expe performance of these two companies in the coming year. You've collected data from the companies financial statements, and the Data Collected (in dollars) Accounts receivables Net fixed assets Total assets IntelliGames Inc. BrainGames Inc. Industry Average $11,700 240,000 375,000 $8,100 165,000 285,000 $8,625 650,250 703,800 using the preceding information, complete the following statements. 1. A 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 IntelliGames's net fixed assets. 0. IntelliGames' total asset turnover ratio is Y than that of IntelliGames Inc. This could be because BrainGames is a relatively new and book values of its fised assets isthan the acquisition costs and book values of whichthan the industry's average total asset turnover ratio. In general, a higher total asset turnover ratio indicates areater efficiency The inventory turnover ratio across companies in IAC's industry is 10.05. Based on this information, which of the following statements is true for Industrialization Automation Company (IAC)? O IAC is holding less inventory per dollar of CoGs compared to the industry average. O Industrialization Automation Company (IAC ) is holding more inventory per dollar of COGS compared to the industry average
