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

Outdoor Waterworks Inc.

Income Statement

For Year Ended December $31,2023$

Net sales $ $1,016,000$

Cost of goods sold:

Inventory, Dec. $31,2022$ $ $77,860$

Purchases $605,840$

Goods available for sale $ $683,700$

Inventory, Dec. $31,202359,790$

Cost of goods sold $623,910$

Gross profit from sales $ $392,090$

Operating expenses $278,360$

Operating profit $ $113,730$

Interest expense $11,900$

Profit before taxes $ $101,830$

Income taxes $19,114$

Profit $ $82,716$

Outdoor Waterworks Inc.

Balance Sheet

December $31,2023$

Assets

Cash $ $22,700$

Current non$-$strategic investments $25,080$

Accounts receivable, net $52,580$

Notes receivable $11,060$

Inventory $59,790$

Prepaid expenses $5,860$

Plant and equipment, net $329,020$

Total assets $ $506,090$

Liabilities and Equity

Accounts payable $ $49,040$

Accrued wages payable $6,340$

Income taxes payable $7,110$

Long$-$term note payable, secured by mortgage on plant $115,500$

Common shares, $160,000$ shares $194,500$

Retained earnings $133,600$

Total liabilities and equity $ $506,090$

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.$)$

Analysis Component:

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