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

Outdoor Waterworks Inc.

Income Statement

For Year Ended December $31,2023$

Net sales $ $1,146,000$

Cost of goods sold:

Inventory, Dec. $31,2022$ $ $84,360$

Purchases $618,840$

Goods available for sale $ $703,200$

Inventory, Dec. $31,202361,740$

Cost of goods sold $641,460$

Gross profit from sales $ $504,540$

Operating expenses $291,360$

Operating profit $ $213,180$

Interest expense $13,200$

Profit before taxes $ $199,980$

Income taxes $19,764$

Profit $ $180,216$

Outdoor Waterworks Inc.

Balance Sheet

December $31,2023$

Assets

Cash $ $24,000$

Current non$-$strategic investments $26,640$

Accounts receivable, net $53,880$

Notes receivable $12,360$

Inventory $61,740$

Prepaid expenses $6,120$

Plant and equipment, net $335,520$

Total assets $ $520,260$

Liabilities and Equity

Accounts payable $ $49,560$

Accrued wages payable $6,600$

Income taxes payable $7,500$

Long$-$term note payable, secured by mortgage on plant $119,400$

Common shares, $160,000$ shares $201,000$

Retained earnings $136,200$

Total liabilities and equity $ $520,260$

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 $$441,720,$ common shares were $$201,000,$ and retained earnings were $$113,040.$

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.