The $2023$ financial statements of Outdoor Waterworks Inc. follow:

Outdoor Waterworks Inc.

Income Statement

For Year Ended December $31,2023$

Net sales $ $1,096,000$

Cost of goods sold:

Inventory, Dec. $31,2022$ $ $81,860$

Purchases $613,840$

Goods available for sale $ $695,700$

Inventory, Dec. $31,202360,990$

Cost of goods sold $634,710$

Gross profit from sales $ $461,290$

Operating expenses $286,360$

Operating profit $ $174,930$

Interest expense $12,700$

Profit before taxes $ $162,230$

Income taxes $19,514$

Profit $ $142,716$

Outdoor Waterworks Inc.

Balance Sheet

December $31,2023$

Assets

Cash $ $23,500$

Current non$-$strategic investments $26,040$

Accounts receivable, net $53,380$

Notes receivable $11,860$

Inventory $60,990$

Prepaid expenses $6,020$

Plant and equipment, net $333,020$

Total assets $ $514,810$

Liabilities and Equity

Accounts payable $ $49,360$

Accrued wages payable $6,500$

Income taxes payable $7,350$

Long$-$term note payable, secured by mortgage on plant $117,900$

Common shares, $160,000$ shares $198,500$

Retained earnings $135,200$

Total liabilities and equity $ $514,810$

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 $$439,220,$ common shares were $$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.$)$

Analysis Component:

Identify whether the ratios calculated above are favourable or unfavourable to the industry averages.