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The 2 0 2 3 financial statements of Outdoor Waterworks Inc. follow: Outdoor Waterworks Inc. Income Statement For Year Ended December 3 1 , 2
The financial statements of Outdoor Waterworks Inc. follow:
Outdoor Waterworks Inc.
Income Statement
For Year Ended December
Net sales $
Cost of goods sold:
Inventory, Dec. $
Purchases
Goods available for sale $
Inventory, Dec.
Cost of goods sold
Gross profit from sales $
Operating expenses
Operating profit $
Interest expense
Profit before taxes $
Income taxes
Profit $
Outdoor Waterworks Inc.
Balance Sheet
December
Assets
Cash $
Current nonstrategic investments
Accounts receivable, net
Notes receivable
Inventory
Prepaid expenses
Plant and equipment, net
Total assets $
Liabilities and Equity
Accounts payable $
Accrued wages payable
Income taxes payable
Longterm note payable, secured by mortgage on plant
Common shares, shares
Retained earnings
Total liabilities and equity $
Assume all sales were on credit. Also assume the longterm note payable is due in with no current portion. On the December balance sheet, the assets totalled $ common shares were $ and retained earnings were $
Required:
Calculate the following: Use days in a year. Do not round your intermediate calculations. Round the answers to decimal places.
Analysis Component:
Identify whether the ratios calculated above are favourable or unfavourable to the industry averages.
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