You are analyzing two companies that manufacture electronic toys-IntelliGames Inc. and BrainGames Inc. IntelliGames was launched eight years ago, whereas BrainGames is a relatively new company that has only been in operation for the past two years. However, both companies have an equal market share with sales of $700,000 each. You've gathered up company data to compare IntelliGames and Brain Games. For the same period, the average sales for 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, and the information follows: Data Collected (in dollars) IntelliGames Inc. BrainGames Inc. Industry Average Accounts receivables $18,900 $27,300 $20,125 Net fixed assets 385,000 560,000 1,517,250 Total assets 665,000 875,000 1,642,200 Use the preceding information to complete the following statements. 1. A days sales outstanding, or average collection period, represents an efficient credit and collection policy. Between the two companies, is collecting cash from its customers faster than ; but both companies are collecting their receivables less quickly than the industry average. 2. BrainGames Inc.'s fixed asset turnover ratio is than that of IntelliGames Inc. This could be because BrainGames is a relatively new company, such that the acquisition costs and book values of its fixed assets is than the acquisition costs and book values of IntelliGames's net fixed assets. 3. IntelliGames' total asset turnover ratio is which is than the industry's average total asset turnover ratio. In general, a higher total asset turnover ratio indicates greater efficiency. Grade Final Step