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

Outdoor Waterworks Inc.

Income Statement

For Year Ended December $31,2023$

Net sales $ $1,126,000$

Cost of goods sold:

Inventory, Dec. $31,2022$ $ $83,360$

Purchases $616,840$

Goods available for sale $ $700,200$

Inventory, Dec. $31,202361,440$

Cost of goods sold $638,760$

Gross profit from sales $ $487,240$

Operating expenses $289,360$

Operating profit $ $197,880$

Interest expense $13,000$

Profit before taxes $ $184,880$

Income taxes $19,664$

Profit $ $165,216$

Outdoor Waterworks Inc.

Balance Sheet

December $31,2023$

Assets

Cash $ $23,800$

Current non$-$strategic investments $26,400$

Accounts receivable, net $53,680$

Notes receivable $12,160$

Inventory $61,440$

Prepaid expenses $6,080$

Plant and equipment, net $334,520$

Total assets $ $518,080$

Liabilities and Equity

Accounts payable $ $49,480$

Accrued wages payable $6,560$

Income taxes payable $7,440$

Long$-$term note payable, secured by mortgage on plant $118,800$

Common shares, $160,000$ shares $200,000$

Retained earnings $135,800$

Total liabilities and equity $ $518,080$

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 $$440,720,$ common shares were $$200,000,$ and retained earnings were $$112,440.$

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.