W14.24 1. Qur Play hasO 9.86 days of sales tied up in receivables, which is much Ohigher Law ER than the industry average. It takes Our PlayLess cash from its customers than it takes Like Games. time to collect Ohighe 2. Like Games's fixed assets turnover ratio is Le 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 paid a its fixed assets. A 801B1.09lC.286D$9. ShigheR Lowee amount for 8.01x 3. The average total assets turnover in the electronic toys industry is of sales is being generated with every dollar o1.0x Lowee Ohighee which means that total assets turnover ratio indicates greaterl 2.86y Lower investment in assets. A efficiency. Both companies' total assets turnover ratios are industry average. than e OHighee
W14.24 1. Qur Play hasO 9.86 days of sales tied up in receivables, which is much Ohigher Law ER than the industry average. It takes Our PlayLess cash from its customers than it takes Like Games. time to collect Ohighe 2. Like Games's fixed assets turnover ratio is Le 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 paid a its fixed assets. A 801B1.09lC.286D$9. ShigheR Lowee amount for 8.01x 3. The average total assets turnover in the electronic toys industry is of sales is being generated with every dollar o1.0x Lowee Ohighee which means that total assets turnover ratio indicates greaterl 2.86y Lower investment in assets. A efficiency. Both companies' total assets turnover ratios are industry average. than e OHighee
Intermediate Financial Management (MindTap Course List)
13th Edition
ISBN:9781337395083
Author:Eugene F. Brigham, Phillip R. Daves
Publisher:Eugene F. Brigham, Phillip R. Daves
Chapter21: Supply Chains And Working Capital Management
Section: Chapter Questions
Problem 16P: The Thompson Corporation projects an increase in sales from 1.5 million to 2 million, but it needs...
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