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 ratlos Include the average collection period (also called the days sales outstanding ratio), the inventory turnover ratio, the fixed asset turnover ratio, and the total asset turnover ratio. Consider the following case: Polk Software Inc. has a quick ratio of 2.00x, $24,750 in cash, $13,750 in accounts receivable, some inventory, total current assets of $55,000, and total current Habilities of $19,250. The company reported annual sales of $200,000 in the most recent annual report. Over the past year, how often did Polk Software Inc. sell and replace its inventory? 13.33x O 8.01% O 12.12% 2.86x The Inventory turnover ratio across companies in the software Industry is 10.302x. Based on this information, which of the following statements is true for Polk Software Inc.? O Polk Software Inc. is holding less inventory per dollar of sales compared with the industry average. O Polk Software Inc. is holding more 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 &ompany that has been in operation for only the past two years. However, both companies have an equal market share with sales of $200,000 each. You've collected company data to compare Like Games and Our Play. Last year, the average sales for all industry competitors was $510,000. As an analyst, you want to make comments on the expected performance of these two companies in the coming year. You've collected data from the companies' financial statements. This information is listed as follows: (Note: Assume there are 365 days in a year) Data Collected in dollars) Like Games Our Play Industry Average Accounts receivable 5,400 7,800 7,700 Net fixed assets 110,000 160,000 433,500 Total assets 190,000 250,000 469,200 Using this information, complete the following statements to include in your analysis, 1. Our Play has days of sales tied up in receivables, which is much than the industry average. It takes Our Play time to collect cash from its customers than it takes Like Games 2. Like Games's fixed assets turnover ratios than that of Our Play. Thi 5 because Uke Games was formed eight years ago, so the acquisition cost of its fixed assets is recorded at historic values when the company bought its assets and has been depreciated since then. Assuming that fixed assets prices (not book values) rose over the past six years due to inflation, Our Play palda amount for its fixed assets Using this information, complete the following statements to include in your analysis. 1. Our Play has days of sales tied up in receivables, which is much than the Industry average. It takes Our Play time to collect cash from its customers than it takes Like Games 2. Like Games's fixed assets turnover ratio is than that of Our Play. This is because Like Games was formed eight years ago, so the acquisition cost of its fixed assets is recorded at historic values when the company bought Its assets and has been depreciated since then. Assuming that fixed assets prices (not book values) rose over the past six years due to inflation, Our Play paida_ amount for its fixed assets. 3. The average total assets turnover in the electronic toys industry is which means that of sales is being generated with every dollar of investment in assets. A total assets turnover ratio indicates greater efficiency. Both companies' total assets turnover ratios are than the industry average. whereas Our Play is a relatively new company that has been in operation for only the past two years. share with sales of $200,000 each. You've collected company data to compare Like Games and Our Pla competitors was $510,000. As an analyst, you want to make comments on the expected performance You've collected data from the companies' financial statements. This information is listed as follows: (N Data Collected (in dollars) Like Games Our Play Industry Average 7,700 Accounts receivable Net fixed assets 5,400 110,000 7,800 160,000 433,500 469,200 Total assets 190,000 250,000 Using this information, complete the following statements to include in your analysis. 1. Our Play has days of sales tied up in receivables, which is much than the indus pllect cash from its customers than it takes Like Games. 14.24 2. Like Games's Sets turnover ratio is than that of Our Play. This is because Like Gam acquisition cd 9.86 fixed assets is recorded at historic values when the company bought its assets an Assuming that tixeu assets prices (not book values) rose over the past six years due to inflation, Our Pla assets. 3. The average total assets turnover in the electronic toys industry is which means that every dollar of investment in assets. A V total assets turnover ratio indicates greater efficienc ratios are than the industry average. Our Play has days of sales tied up in receivables, which is much than the Industry average. It takes Our Play time to collect cash from its customers than it takes Like Game lower Like Games's fixed assets turnover ratio is than that of Our Play because Like Games was formed eight years ago, so the acquisition cost of its fixed assets is recorded at historic values when the cor higher ught its assets and has been depreciated since then. Assuming that fixed assets prices (not book values) rose over the past six years couro Inflation, Our Play paid a Vamount for its fixed assets. The average total assets turnover in the electronic toys industry is which means that of sales is being generated with every dollar of investment in assets. A total assets turnover ratio indicates greater efficiency. Both companies' total assets turnover ratios are than the industry average, 1. Our Play has Y days of sales tied up in receivables time to collect cash from its customers than it takes Like Ga 2. hes's fixed assets turnover ratio is thar less bn cost of its fixed assets is recorded at histork valu A more b that fixed assets prices (not book values) rose ove assels. 3. The average total assets turnover in the electronic toys indu every dollar of investment in assets. A total ass ratios are than the industry average. Using this information, complete the following statements to include in your analysis. 1. Our Play has days of sales tied up in receivables, which is much than the industry average. It takes Our Play time to collect cash from its customers than it takes Like Games. 2. Like Games's fixed assets turnover ratio is than that of Our Play. This is because Like Games was formed eight years ago, sot acquisition cost of its fixed assets is record oric values when the company bought its assets and has been depreciated since then. higher Assuming that fixed assets prices (not bool rose over the past six years due to inflation, Our Play pald a y amount for it assets. lower 3. The average total assets turnover in the electronic toys Industry is which means that of sales is being general every dollar of investment in assets. A total assets turnover ratio indicates greater efficiency. Both companies' total assets turn ratios are than the Industry average. Using this information, complete the following statements to include in your analysis. 1. Our Play has days of sales tied up in receivables, which is much than the industry average. It takes Our Play time to collect cash from its customers than it takes Like Games 2. Uke Games's fixed assets turnover ratio is than that of Our Play. This is because Like Games was formed eight years ago, so the acquisition cost of its fixed assets is recorded at historic values when the company bought its assets and has been depreciated since then Assuming that fixed assets prices (not took values) rose over the past six years due to inflation, Our Play palda amount for its fixed assets lower 3. The average total assets turnover in the electronic toys industry is which means that is being generated with every dollar of investment in assets. A total assets turnover ratio indicates greater efficiency. Both d higher total assets turnover ratios are than the industry average was $510,000. As an analyst, you want to make comments on the expected performance of these two Eted data from the companies' financial statements. This information is listed as follows: (Note: Assum Data Collected (in dollars) Like Games Our Play Industry Average nts receivable 5,400 7,800 7,700 Red assets 110,000 160,000 433,500 assets 190,000 250,000 469,200 nformation, complete the following statements to include in your analysis. y has days of sales tied up in receivables, which 1.09x than the industry aver time to collect cash from its customers than it takes Lik 8.01x mes's fixed assets turnover ratio is than that of This is because Like Games was tion cost of its fixed assets is recorded at historic values whe 2.86x pany bought its assets and has be ing that fixed assets prices (not book values) rose over the pl prs due to inflation, Our Play paid 13.33x erage total assets turnover in the electronic toys Industry is which means that dollar of investment in assets. A total assets turnover ratio indicates greater efficiency. Both than the industry average. are your analysis. s much than the Ind $2.86 age. It takes Our Play e Games. $8.01 Our Play. This is because Like Ga ormed eight years ago, so the the company bought its assets a $13.33 en depreciated since then. ast six years due to inflation, Our amount for its fixed $1.09 a , which means that of sales is being generated with over ratio indicates greater efficiency. Both companies' total assets turnover s $510,000. As an analyst, you want to make comments on the expected data from the companies' financial statements. 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The avera ssets turnover in the electronic toys industr higher stment in assets. A total assets every doll ratios are than the industry average