Walker Telecommunications has a quick ratio of 2.00x, $34,200 in cash, $19,000 in accounts receivable, some inventory, total current assets of $76,000, and total current liabilities of $26,600. The company reported annual sales of $700,000 in the most recent annual report. Over the past year, how often did walker Telecommunications sell and replace its inventory? x 8.01 0 33.77 x O 30.70 X 2.86 x Explanation Open The inventory tumover ratio across companies in the telecommunications industry is 33.77X. Based on this information, which of the following statements is true for Walker Telecommunications? walker Telecommunications is holding less inventory per dollar of sales compared with the industry average walker Telecommunications is holding more inventory per dollar of sales compared with the industry average Explanation Open 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 $700,000 each. You've colected company data to compare Like Games and our play. Last year, the average sales for all industry competitors was $1,785,000. 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: Accounts receivable Net fixed assets Total assets Data collected (in dollars) Like Games Our Play 18,900 27,300 385,000 560,000 665,000 375,000 Industry Average 26,950 1,517,250 1,64 2,200 Using this information, complete the following statements to indude in your analysis 1. A high x days of sales outstanding represents an efficient credit and collection policy. Between the two companies, Like Games is collecting cash from its customers faster than Our Play, but both companies are colecting their receivables less quickly than the industry average 2. Our Play's fixed assets turnover ratio is lower than that of uke Games. This could be because our play is a relatively new company, so the acquisition cost of its fixed assets is higher than the recorded cost of uke Games's net fixed assets. 3. Uke Games's total assets tumover ratio is 1.05 X , which is greater than the industry's average total assets tumover ratio. In general, a higher total assets tumover ratio indicates greater efficiency Explanation