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You are analyzing two companies that manufacture electronic toys-tike Games inc, and Our Play Inc, tike Games was launched eight years ago, whereas Our Play

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You are analyzing two companies that manufacture electronic toys-tike Games inc, and Our Play Inc, tike Games was launched eight years ago, whereas Our Play is a relatively new company that has been in operation for onily the past two years, However, both companies have an equal market share with sales of $800,000 each. You've collected company date to compare Like Games and Our Play, Last vear, the average sales for all industry competitors was $2,040,000. As an analyst, vou want to make comments on the expected performance of these two companies in the coming year. You ve collected data from the companles' finandial statements. This information is fisted as follows: (Note: Assume there are 365 days in a year.) Using this information, complete the following statements to include in your analysis. 1. Our Play has days of sales ted up in recelvables, which is much than the industry average. It takes -Our Play tine to collect cash from its customers than it takes tike Games. 2. Uke Games's fixed assets turnover ratlo is than that of Our May. This is because the Games was formed eight vears ago, so the acquisition cost of its fixed assets is recorded at fistoric values when the company bought its assets and has been depreciated since then. Hamoint for itssfoued

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