1 pped Print The 2020 financial statements of Outdoor Waterworks Inc. follow: Outdoor Waterworks Inc. Income Statement For Year Ended December 31, 2020 Net sales Cost of goods sold: Inventory, Dec. 31, 2019 Purchases Goods available for sale Inventory, Dec. 31, 2020 Cost of goods sold. Gross profit from sales Operating expenses Operating profit Interest expense Profit before taxes Income taxes $1,096,000 81,860 613,840 $ 695,700 60,990 634,710 $ 461,290 286,360 $ 174,930 12,700 $ 162,230 19,514 Profit Assets Cash Outdoor Waterworks Inc. Balance Sheet December 31, 2020 Current non-strategic investments Accounts receivable, net Notes receivable Inventory Prepaid expenses Plant and equipment, net Total assets Liabilities and Equity Accounts payable Accrued wages payable $ 142,716 $ 23,500 26,040 53,380 11,860 60,990 6,020 333,020 $514,810 $ 49,360 6,500 Assets Cash Outdoor Waterworks Inc. Balance Sheet December 31, 2020 Current non-strategic investments Accounts receivable, net Notes receivable Inventory Prepaid expenses Plant and equipment, net Total assets Liabilities and Equity Accounts payable Accrued wages payable $ 23,500 26,040 53,380 11,860 60,990 6,020 333,020 $514,810 $ 49,360 6,500 Income taxes payable. Long-term note payable, secured by mortgage on plant 7,350 117,900 Common shares; 160,000 shares Retained earnings Total liabilities and equity 198,500 135,200 $514,810 Assume all sales were on credit. Also assume the long-term note payable is due in 2023, with no current portion. On the December 31. 2019, balance sheet, the assets totalled $439,220, common shares were $198,500, and retained earnings were $111,540. Required: Calculate the following: (Use 365 days in a year. Do not round your intermediate calculations. Round the answers to 2 decimal places.) ints 1 Skipped Lommon snares, 100, 200 snares Retained earnings Total liabilities and equity 196,500 135,200 $514,810 Assume all sales were on credit. Also assume the long-term note payable is due in 2023, 2019, balance sheet, the assets totalled $439,220, common shares were $198,500, and r Required: Calculate the following: (Use 365 days in a year. Do not round your intermediate calcul places.) Print a Current ratio b. Quick ratio c Days' sales uncollected d. Inventory turnover e. Days' sales in inventory f. Ratio of pledged plant assets to secured liabilities g Times interest earned to 1 to 1 days times days to 1 times h. Profit margin i. Total asset turnover % times j. Return on total assets % k Return on common shareholders' equity % nts Skipped Analysis Component: Identify whether the ratios calculated above are favourable or unfavourable to the industry averages. Print a. Current ratio b. Quick ration c. Days' sales uncollected d. Inventory turnover e Days' sales in inventory Industry Average 161 1.1.1 21 days 5 times 70 days f. Ratio of pledged plant assets to secured liabilities 1.4.1 g Times interest earned h. Profit margin Total asset turnover Return on total assets 50 times 14 % 2.3 times 20% k. Return on common shareholders' equity 32.7 %