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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

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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 $200,000 each. You've collected company data to compare Like Games and Our Play. Last year, the average sales for all industry competitors was $510,000. 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.) Industry Average Accounts receivable Net fixed assets 7.700 Data Collected (in dollars) Like Games Our Play 5.400 7,800 110,000 160,000 190.000 250,000 433,500 459,200 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 collect cash from its customers than it takes Like Games than the industry average. It takes Our Play time to 2. Uke Games's fixed assets turnover ratio is 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 palda amount for its fixed assets. 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

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