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You are analyzing two companies that manufacture electronic toys-Like Games Inc, and Our Play Inc. Uke 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. 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 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' financal statements. This information is listed as follows: (Note: Assume there are 365 days in a year.) Using this informabon, complete the following statements to indude in your analysis: 1. Our Play has days of sales bed up in receivabies, which is much collect cash from its customers than it takes Like Games. than the industry average. It takes Our Play time to 2. Like 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 foced assetis is recorded at histonic values when the company bought its assets and has been depreciated since then. Assuming that fiked assets prices (not book values) rose over the past six years due to infation, Our Play paid a mesers. Using this information, complete the foliowing statements to include in your analysis. 1. Our Play has doys of sales bed up in receivables, which is much collect cash from its customers than it takes Lke Games. than the industry average. It takes Our Play time to 2. Live 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 thet. Assuming that foxed assets prices (not book values) rose over the past six vears due to inflation, Our Play paid a astets. 3. The average total assets tumover in the electronsc tors industry is which means that amoune for its fixed 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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