lolo

PLEASE FILL THE BLANK SPACE

3. Asset management ratios Asset management ratios are used to measure how effectively a firm manages its assets, by relating the amount a firm has invested in a partialar type of asset (or group of assets) tothe amount of revenues the asset is generating. Examples 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 asset turnover ratio, Consider the following case: Graham Pharmaceuticals has a quick ratio of 2.00x, $33,525 in cash, $18,625 in accounts receivable, some inventory, total current assets of S74 500, and total aanrent liabilities of $26,075. The company reported annual sales of $500,000 in the most recent annual report. over the past year, how often did Graham Pharmaceuticals sell and replace its inventory? Q 24.61 x Q 8.01 x Q 22.37 x Q 2.86 x The inventory turnover ratio across companies in pharmaceutical industry is 19.02x. Based on this information, which of the following for Graham Pharmaceuticals? o Graham Pharmaceuticals is holding more inventory per dollar of sales to the industry average. Q Graham Pharmaceuticals is holding less inventory per dollar of sales compared to the industry average. You are analyting two companies that manufacture electronic toys-uke Games Inc. and our Play Inc. Uke 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 ss00,000 each- You've collected company data to compare uke Games and our Play. Last year, the average sales for all industry competitors was si 275,000. 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: Data Collected (in dollars) Like Games Ind ustry Average 13,500 19,500 19,250 1.083,7so 625,000 1,173,000