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
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
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I need help with number 3 only.
Transcribed Image Text: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
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