Keystone Ranch on Vimeo MSU Denver Student Hub MINDTAP From\' Cengage Q Search t
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Keystone Ranch on Vimeo MSU Denver Student Hub MINDTAP From' Cengage Q Search this c Ch 04: Assignment- Analysis of Financial Statements Data Collected (in dollars) Accounts receivable Net fixed assets Total assets Like Games 2,700 55,000 95,000 Our PlayIndustry Average 3,850 216,750 234,600 3,900 80,000 125,000 Using this information, complete the following statements to include in your analysis. 1. A collecting cash from its customers faster than average 2. Our Play's fixed assets turnover ratio is the acquistion cost of its fixed assets is 3. Like Games's total assets turnover ratio is general, a higher total assets turnover ratio indicates greater efficiency. days of sales outstanding represents an efficient credit and collection policy. Between the two companies is , but both companies are collecting their receivables less quickly than the industry than that of Like Games. This could be because Our Play is a relatively new company, so than the recorded cost of Like Games's net fixed assets. which is than the industry's average total assets turnover ratio. In Flash Player MAC 31,0,0,108 3 3.341 2004-2016 Aplhia. All rights reserved. as noted. All rights Grade t Now Continue without saving 12Explanation / Answer
Average Collection Period = 365 days* Accounts Receivable/Net Sales
Like Games = 365 * ( 2700 / 100000 ) = 9.86 Days
Our Play = 365 * ( 3900 / 100000 ) = 14.24 Days
2.Our Play's fixed assets turnover ratio is ___ lower __ than that of like games. This could be because Our Play is a relatively new company, so the aquisition cost of its fixed assets is higher than the recorded cost of Like Game's net fixed assets.
Fixed Asset Turnover Ratio = Sales / Fixed Assets
Like Games = 100000 / 55000 = 1.82
Our Play = 100000 / 80000 = 1.25
3.) Like Game's total assets turnover ratio is _1.05_, which is __ lower __ than the industry's average total assets turnover ratio. In general, a higher total assets turnover ratio indicates greater efficiency.
Total assets turnover ratio = Sales / Total Assets
Like Games = 100000 / 95000 = 1.05
Our Play = 100000 / 125000 = 0.8
Industry = 255000 / 234600 = 1.09
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