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

Outdoor Waterworks Inc.

Income Statement

For Year Ended December $31,2023$

Net sales $ $1,056,000$

Cost of goods sold:

Inventory, Dec. $31,2022$ $ $79,860$

Purchases $609,840$

Goods available for sale $ $689,700$

Inventory, Dec. $31,202360,390$

Cost of goods sold $629,310$

Gross profit from sales $ $426,690$

Operating expenses $282,360$

Operating profit $ $144,330$

Interest expense $12,300$

Profit before taxes $ $132,030$

Income taxes $19,314$

Profit $ $112,716$

Outdoor Waterworks Inc.

Balance Sheet

December $31,2023$

Assets

Cash $ $23,100$

Current non$-$strategic investments $25,560$

Accounts receivable, net $52,980$

Notes receivable $11,460$

Inventory $60,390$

Prepaid expenses $5,940$

Plant and equipment, net $331,020$

Total assets $ $510,450$

Liabilities and Equity

Accounts payable $ $49,200$

Accrued wages payable $6,420$

Income taxes payable $7,230$

Long$-$term note payable, secured by mortgage on plant $116,700$

Common shares, $160,000$ shares $196,500$

Retained earnings $134,400$

Total liabilities and equity $ $510,450$

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 $$437,220,$ common shares were $$196,500,$ and retained earnings were $$110,340.$

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.