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3. Asset management ratios Asset management ratios are used to measure how effectively a firm manages its assets, by relating the amount a firm has invested in a particular type of asset (or group of assets) to the amount of revenues the asset is generating. Examples of asset management ratios include the average collection period (also called the days sales outstanding ratio), the inventory turnover ratio, the fixed asset turnover ratio, and the total assat turnover ratio. Consider the following case: Crockett Electronics has a quick ratio of 2.00x,$29,475 in cash, $16,375 in accounts receivable, some inventory, total current assets of $65,500, and total current liabilities of $22,925. The company reported annual sales of $700,000 in the most recent annual report. Additionally, the company's cost of goods sold is 75% of sales. Over the past year, how often did Crockett Electronics sell and replace its inventory? 29.39x 8.01x 26.72x 2.86x competitors was $1,785,000. 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' finandal statements. This information is listed as follows: (Note: Assume there are 365 days in a year.) Using this information, complete the following statements to include in your analysis. 1. A. days of sales outstanding represents an efficlent credit and collection policy. Between the two companies, is collecting cash from its customers faster than , but both companies are collecting their receivables less quickly than the industry average. 2. Our Play's fixed assets turnover ratio is than that of Uke Games. This could be because Our Play is a relatively new company, so the acquisition cost of its froed assets is than the recorded cost of Uhe Games's net foxed assets. 3. Uke Games's total assets turnover ratio is which is than the industry's average total assets tumover ratio. In general, a higher total assets tumover ratio indicates greater efficiency. The inventory turnover ratio across companies in the electronics industry is 22.712x. Based on this information, which of the following statements is true for Crockett Electronics? Crockett Electronics is holding less inventory per dollar of sales compared with the industry average. Crockett Electronics is holding more inventory per doilar of sales compared with the industry average. You are analyzing two companies that manufacture electronic toys-Uke Games Inc. and Our Play Inc. Like Games was faunched 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 $700,000 each. You've collected company data to compare Lke Games and Our Play, Last year, the average sales for all industry competitors was $1,785,000. 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' financial statements. This information is listed as follows: (Note: Assume there are 365 days in a year.) Using this information, complete the following statements to indude in your analysis

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