4 The 2023 financial statements of Outdoor Waterworks Inc. follow: Outdoor Waterworks Inc. Income Statement For Year Ended December 31, 2023 45 points Skloped Net sales Cost of goods sold: Inventory, Dec. 31, 2022 Purchases Goods available for sale Inventory, Dec. 31, 2023 Cost of goods sold Gross profit from sales Operating expenses Operating profit Interest expense Print Profit before taxes References Income taxes Profit $1,016,000 $ 77,860 605,840 $ 683,700 59,790 623,910 $ 392,090 278,360 $ 113,730 11,900 $101,830 19,114 $ 112,716 Assets Cash Outdoor Waterworks Inc. Balance Sheet December 31, 2023 Current non-strategic Investments Accounts receivable, net Notes receivable Inventory Prepaid expenses Plant and equipment, net . Total assets Liabilities and Equity $22,700 25,000 52.580 11,060 59,790 5,800 329,020 Accounts payable Accrued wages payable Income taxes payable Long-term note payable, secured by mortgage on plant Conson shares, 160,000 shares Retained earnings Total liabilities and equity $506,090 $ 49,040 6.340 7,110 115,500 194,500 133,600 $500,000 Assume all sales were on credit. Also assume the long-term note payable is due in 2026, with no current portion. On the December 31, 2022. balance sheet, the assets totalled $435,220, common shares were $194,500, and retained earnings were $109.140. Required: Calculate the following: (Use 365 days in a year. Do not round your intermediate calculations. Round the answers to 2 decimal places.) a Current ratio b Quick ratio, 10 1 45 4 points Assume all sales were on credit. Also assume the long-term note payable is due in 2026, with no current portion. On the December 31 2022, balance sheet, the assets totalled $435,220, common shares were $194,500, and retained earnings were $109,140 Required: Calculate the following: (Use 365 days in a year. Do not round your intermediate calculations. Round the answers to 2 decimal places.) Skipped Print a. Current ratio b. Quick ratio c Days' sales uncollected d Inventory turnover e. Days' sales in inventory 1 Ratio of pledged plant assets to secured liabilities g Times interest eamed to 1 to 1 days times days to 1 times References h. Profit margin Total asset turnover % times Return on total assets % k Return on common shareholders' equity % - Analysis Component: Identify whether the ratios calculated above are favourable or unfavourable to the industry averages. a Current ratio b Quick ratio Days' sales uncollected d Inventory turnover e Days' sales in inventory Ratio of pledged plant assets to secured liabilities g Times interest eamed i h Profit margin Total asset turnover Industry Average 161 111 21 days 5 times 70 days 141 50 times 14 % Return on total assets k Rotum on common shareholders equity 2.3 times 20% 327 %