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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 $100,000 each. You've collected company data to compare Like Games and Our Play. Last year, the average sales for all Industry competitors was $255,000. As an analyst, you want to make comments on the expected performance of these two companies in the coming year, Youve collected data from the companies financial statements. This information is listed as follows: (Note: Assume there are 365 days in a year) Data Collected in dollars) Like Games Our Play Industry Average Accounts receivable 2,700 3,900 13,860 Net fixed assets 55,000 80,000 216,750 Total assets 95,000 125,000 234,600 Uting this information, complete the following statements to include in your analyst 1. A days of salts outstanding represents an eficient credit and collection polley, Between the two companies la collecting cash from its customers faster than but both companies are collecting their receivables less quickly than the industry average 2. Our Plays fixed assets tumover ratio is than that of Like Games. This could be because Our Play as a relacvely new company, so the acquisition cost of its fixed assets is than the recorded cost of Uke Games's not fixed assets 3. Like Games's total assets turnover ratio is which is than the industry's average total assets turnover rate. In general, higher total assets turnover ratio indicates greater efficiency

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