Outdoor Waterworks Inc. Income Statement For Year Ended December 31, 2023 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 Profit before taxes Income taxes Profit $1,036,000 $ 78,860 607,840 $ 686,700 60,090 626,610 $ 409,390 280,360 $ 129,030 12,100 $ 116,930 19,214 $ 97,716 Outdoor Waterworks Inc. Balance Sheet December 31, 2023 Assets Cash Current non-strategic investments Accounts receivable, net $ 22,900 25,320 52,780 Notes receivable Inventory Prepaid expenses Plant and equipment, net Total assets Liabilities and Equity 11,260 60,090 5,900 330,020 $508,270 Accounts payable $ 49,120 Accrued wages payable 6,380 Income taxes payable 7,170 Long-term note payable, secured by mortgage on plant 116,100 Common shares, 160,000 shares 195,500 Retained earnings 134,000 Total liabilities and equity $508,270 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 $436,220, common shares were $195,500, and retained earnings were $109,740. 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 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 % B Analysis Component: Identify whether the ratios calculated above are favourable or unfavourable to the industry averages. a. Current ratio b. Quick ratio c. Days' sales uncollected d. Inventory turnover e. Days' sales in inventory Industry Average 1.6:1 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 i. Total asset turnover j. Return on total assets 50 times 14 % 2.3 times 20 % k. Return on common shareholders' equity 32.7 %