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 asstet is generating. Exampies of asset management ratios include the average collection period (also called the days sales outstanding ratio), the inventory turnover ratio, the fixed asset turnover ratio, and the total assat turnove rabo. Consider the following case: Monroe Manufacturing has a quick ratio of 2.00x,$28,125 in cash, $15,625 in accounts recelvable, some inventory, total current assets of $62,500, and total current liabilities of $21,875. The company reported annual sales of $200,000 in the most recent annual report. Additionally, the company's cost of goods sold is 75% of sales. Over the past year, how often did Monroe Manufacturing sell and replace its inventory? 8.01x 8.80x 8.00x 2.86x The inventory turnover ratio across companies in the manufacturing industry is 6.8x, Based on this information, which of the following statements is true for Monroe Manufacturing? Monroe Manufacturing is holding more inventory per dollar of sales compared with the industry average. Monroe Manufacturing 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. Lke 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 $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' finandal statements. This information is listed as follows: (Note: Assume there are 365 days in a year.) 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 collect cash f istomers than it takes Like Games. 2. Uke Games's ets turnover ratio is than that of Our Play. This is because Like Games was formed eight years ago, so the acquisition Ixed assets is recorded at historic values when the company bought its assets and has been depreciated since then. Assuming that ruxed assets prices (not book values) rose over the past six years due to inflation, Our Play paid a assets. 3. The average total assets tumover in the electronic toys industry is which means that of sales is being generated with every doliar of investment in assets. A total assets turnover ratio indicates greater efficiency. Both companies' total assets tumover ratios are than the industry average. Using this information, complete the follawing statements to include in your analysis. 1. Our Play has days of sales tied up in receivabl collect cash from its customers than it takes Uke Games. 2. Like Games's fixed assets turnover ratio is than that of Our Pla' ecause Like Games was formed eight years ago, so the acquisition cost of its fixed assets is recorded at historic values when the co aght its assets and has been depreciated since then. Assuming that fixed assets prices (not book values) rose over the past six years uue wo inflation, Our Play paid a 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 tumover ratio indicates greater efficiency. Both companies' total assets turnover ratias 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 recelvables, 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 Uke Games was formed eight years agr acquisition cost of its fixed assets is recorded at historic values when the company bought its assets and has been depreciated since Assuming that fixed assets prices (not book values) rose over the past six years due to inflation, Our Play paid a amoun. assets. 3. The average total assets tumover in the electronic toys industry is which means that of sales is being generated with every dollar of investment in assets. A total assets tumover ratio indicates greater effidency. Both companies' total assets turnover 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 Uke Games. 2. Uke Games's fixed assets turnover ratio is 52. than that of Our Play. This is because Like Games was formed eight years ago, so the acquisition cost of its fixed assets is record ric values when the company bought its assets and has been depreciated since then. Assuming that fixed assets prices (not boo rose over the past six years due to inflation, Our Play paid a amount for its fored assets. 3. The average total assets turnover in the electromictoys 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. Using this information, complete the following statements to include in your analysis. 1. Our Pay has days of sales tied up in receivables, which is much than the industry average. It takes Our Play 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 elght 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 paid a amount for its fixed assets. 3. The average total assets tumover in the electronic toys industry is which means that total assets turnover ratio indicates greater efficiency. Both compai generated with every dollar of investment in assets. A sssets tumover ratios are than the industry average. Using this information, complete the following statements to include in your analysis. Using this information, complete the following statements to include in your analysis. 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 acqulsition 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 price ik values) rose over the past sbx years due to infiation, Our Play paid a amount for its fixed assets. 3. The average total assets turnovi lectronic toys industry is which means that of sales is being generated with every doliar of investment in assets. A total assets turnover ratio indicates greater effidency. Both companies' total assets turnover 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 recelvables, 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 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 paid a amount for its fixed ass 3. The otal assets turnover in the electronic toys industry is which means that of sales is being generated with every dol itment in assets. A total assets turnover ratio indicates greater efficiency. Both companies' total assets turnover ratios than the industry average