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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 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.

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