Asset management rotios are used to measure haw effectively a frm 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 ratios indude the average collection period (also calied the days sales outstanding rabo), the inwentory turnover ratio, the foed asset tumover ratio, and the total asset turnover ratia. Consider the following case: Marroe Manufacturng has a cuick ratio of 2.000,534,875 in cash, 519,375 in accounts receivable, sorne irnentory, total current assets of \$77, \$00, and vatial current lastilities of \$27,125. The company reported annual soles of 5900,000 in the most recent annual repart. Mdditionaily, the compsic's cost of goods sold is 75% of sales. ONe the past year, how often ad Montoe Manufacturing sell and replace its inventory? .01x 2. Arix 28.39x 25.01x is true for Manroe Mantadiung? Mance Muncadianig is halding has imentary ger dolur of sales compared with the industv avesape. You are analyzing two companies that manufocture electronic toys - Lke 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 wath sales of $800,000 each. You've collected company data to compare Like Games and our Play, Last year, the average sales for all industry competitors was $2,040,000. 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' financal 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 analysts. 1. Our Play has days of sales tied up in receivables, which is much than the industry average. if takes our play tine to collect cosh from its customers than it takes tike Games. 2. Lhe Games's foxed assets turnover ratio is than that of Our Play. This is because Lke Games was formed eight years ogo, 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 foxed assets prices (not book values) rose over the past six years due to inflotion, Our ploy paid a amount for its fixed arsets: 3. The average total assets turnover in the electronic toys industry is Which mesns that of sides is being generated with every dollar of investment in assets. A ratios are than the iodustry average