Adams Furniture has a quick ratio of 2.00, $37,575 in cash, $20,875 in accounts receivable, some inventory, total current assets of $83.500, and total current liabilities of $29,225. The company reported annual sales of $100,000 in the most recent annual report Over the past year, how often did Adams Furniture sell and replace its inventory 100 O 4.39% 3.01 2.86% Adams Furniture is holding less inventory per dollar of sales compared with the industry average. You are analyzing two companies that manufacture electronic toys-Like Games Inc. and Our Play Inc. Like Games was launched eight years ago. whereas Our Play is a relatively new company that has been in operation for only the past two years. However, both companies have an equal market share with sales of $100,000 each. You've collected company data to compare Like Games and Our Play. Last year, the average sales for all 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. Fou've collected data from the companies financial statements. This information is listed as follows: (Note: Assume there are 365 days in a year) Accounts receivable Data Collected in dollars) Like Games Our Play 2,700 3,900 55,000 80,000 95,000 125,000 Industry Average 3,850 216,750 234,600 Net fixed assets Total assets Using this information, complete the following statements to include in your analysis A days of sales outstanding represents an efficient credit and collection policy, Between the two companies, is collecting cash from its customers faster than , but both companies are collecting the receivables less quickly than the industry average 2. Our Play's fixed assets turnover ratio is than that of Like Games. This could be because Our Play is a relatively new company, so the acquisition cost of its fixed assets is than the recorded cost of Like Games's net fixed assets. Like Games's total assets turnover ratio is which is than the industry's average total assets turnover ratio. In general, a higher total assets turnover ratio indicates greater efficiency Grade It Now Save & Continue Continue without saving