h $04-$ Assignment $-$ Analysis of Financial Statements

The inventory turnover ratio across companies in the software industry is $6\mathrm{.}205x.$ Based on this information, which of the following statements is true for Polk Software Inc.?

Polk Software Inc. is holding less inventory per dollar of sales compared with the industry average.

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 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' financial statements. This information is listed as follows: $($Note: Assume there are $365$ days in a year.$)$