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

Outdoor Waterworks Inc.

Income Statement

For Year Ended December $31,2023$

Net sales $ $1,006,000$

Cost of goods sold:

Inventory, Dec. $31,2022$ $ $77,360$

Purchases $604,840$

Goods available for sale $ $682,200$

Inventory, Dec. $31,202359,640$

Cost of goods sold $622,560$

Gross profit from sales $ $383,440$

Operating expenses $277,360$

Operating profit $ $106,080$

Interest expense $11,800$

Profit before taxes $ $94,280$

Income taxes $19,064$

Profit $ $75,216$

Outdoor Waterworks Inc.

Balance Sheet

December $31,2023$

Assets

Cash $ $22,600$

Current non$-$strategic investments $24,960$

Accounts receivable, net $52,480$

Notes receivable $10,960$

Inventory $59,640$

Prepaid expenses $5,840$

Plant and equipment, net $328,520$

Total assets $ $505,000$

Liabilities and Equity

Accounts payable $ $49,000$

Accrued wages payable $6,320$

Income taxes payable $7,080$

Long$-$term note payable, secured by mortgage on plant $115,200$

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

Retained earnings $133,400$

Total liabilities and equity $ $505,000$

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 $$434,720,$ common shares were $$194,000,$ and retained earnings were $$108,840.$

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.