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 $$300,000$ each. You've collected company data to compare Like Games and Our Play. Last year, the average sales for all industry

competitors was $$765,000.$ 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 follow$5$: $($Note: Assume there are $365$ days in a year.$)$

Using this information, complete the following statements to include in your analysis.

Our Play has

days of sales tied up in receivables, which is much higher $$ than the industry average. It takes Our Play

more $$ time to collect cash from its customers than it takes Like Games.

Like Games's fixed assets turnover ratio is 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 higher grad amount for its fixed

assets.

The average total assets turnover in the electronic toys industry is $,$ which means that $$1\mathrm{.}09>$ of sales is being generated with

every dollar of investment in assets. A higher grad total assets turnover ratio indicates greater efficiency. Both companies' total assets turnover

ratios are lower grad than the industry average.