X Ul Financial Statements You are analyzing two companies that manuracture electronic toys-LIKE and our may 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 $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' financial statements. This information is listed as follows: (Note: Assume there are 365 days in a year.) Accounts receivable Net foxed assets Data Collected (in dollars) Like Games Our Play 21,600 31,200 440,000 640,000 760,000 1,000,000 Industry Average 30,800 1,734,000 1,876,800 Total assets Using this information, complete the following statements to include in your analysis. 1. Our Play has days of sales tied up in receivables, which is much than the Industry average. It takes Our Play plect cash from its customers than it takes Like Games. 14.24 2. Like Games's sets turnover ratio is than that of Our Play. This is because Like Games was formed eight years ago, so the acquisition cd 9.56 ed assets is recorded at historic values when the company bought its assets and has been depreciated since then Asuming that causes prices (not book values) rose over the past six years due to inflation, Our Play paid a amount for its fired 3. The average total assets turnover in the electronic toys industry is which means that of sales is being generated with every dollar of investment in assets. A total assets turnover ratio indicates greater efficiency. Both companies total assets turnover ratios are than the industry average 80 13 000 000 FS 7 FO F9 910 A $ 4 % 5 6 & 7 + 8 9 a You are analyzing two companies that manuacture electronic toys-Uke Games in and our way in 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 $800,000 each. You've collected company data to compare 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 ont 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.) Accounts receivable Net fixed assets Total assets Data Collected (in dollars) Like Games Our Play 21,600 31,200 440,000 640,000 760,000 1,000,000 Industry Average 30.800 1,734,000 1,876,800 Using this information, complete the following statements to include in your analysis 1. Our Play has days of sales tied up in receivables, which is much than the industry average. It takes Our Play time to collect cash from its customers than it takes Like Game 2. Like Games's foed assets turnover ratio is than that of Our Play higher because Like Games was formed eight years ago, so the acquisition cost of its fixed assets is recorded at historic values when the collower ught its assets and has been depreciated since then Assuming that fored assets prices not book values) rose over the past six years to infation, Our Play paid a amount for its fixed 3. The average total assets turnover in the electronic toys Industry is which means that of sales is being generated with every dolar of investment in assets. A total assets turnover ratio indicates greater efficiency. Both companies to assets turnover ratios are than the industry average FT 90 3 ODO de 4 . FS 40 II * 10 $ 4 A 3 % 5 6 & 7 * CO 9 ) 0 BE E del R T T Y U C 0 P C