Accounts receivable Net fixed assets Total assets Data Collected (in dollars) Like Games 5,400 110,000 190,000 Our Play Industry Average 7,800 7,700 160,000 433,500 250,000 469,200 Using this information, complete the following statements to include in your analysis. 1. A days of sales outstanding represents an efficient credit and collection policy. Between the two companies, cash from its customers faster than is collecting , but both companies are collecting their receivables less quickly than the industry average. than that of Like Games. This could be because Our Play is a relatively new company, so the than the recorded cost of Like Games's net fixed assets. which is than the industry's average total assets turnover ratio. In general, a higher 2. Our Play's fixed assets turnover ratio is acquisition cost of its fixed assets is 3. Like Games's total assets turnover ratio is total assets turnover ratio indicates greater efficiency.

Using this information, complete the following statersents to indude in your analysis. 1. A days of sales outstanding represents an efficient credit and collection policy. Between the two companies, is colecting cash from its customers faster than 2. Our Ploy's foced assets tumover rabio is , but todi companies are collecting their receivables less quickly than the industry average. than that of tike Games. This could ber because Our Play is a relatively new company, so the acquisition cost of its fired assets is than the recorded cost of Lake Games's net fixed ossets. 3. Dife Gemes's total avsets turnover ratio is , which is dian the industry's average total assets tumover fabe. In general, a higher tocal assets tumover ratio indicates greater efficiency