Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

FOR THE DROP DOWNS ABOVE: 1. Our Play has (14.24 / 9.86) days of sales tied up in receivables, which is much (lower / higher)

student submitted image, transcription available below

student submitted image, transcription available below

FOR THE DROP DOWNS ABOVE:

1.Our Play has (14.24 / 9.86) days of sales tied up in receivables, which is much (lower / higher) 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 (lower / higher) 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 paid a (lower / higher) amount for its fixed assets.
3.The average total assets turnover in the electronic toys industry is (1.09x/8.01x/2.86x,28.39x), which means that ($28.39/$1.09/$2.86/$8.01) of sales is being generated with every dollar of investment in assets. A (lower / higher) total assets turnover ratio indicates greater efficiency. Both companies’ total assets turnover ratios are (lower / higher) than the industry average.

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Lectures On Urban Economics

Authors: Jan K Brueckner

1st Edition

0262300311, 9780262300315

More Books

Students also viewed these Economics questions