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The 2020 financial statements of Outdoor Waterworks Inc follow. Outdoor Waterworks Inc. Income Statement For Year Ended December 31, 2020 Net sales $1,116,000 Cost of

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The 2020 financial statements of Outdoor Waterworks Inc follow. Outdoor Waterworks Inc. Income Statement For Year Ended December 31, 2020 Net sales $1,116,000 Cost of goods sold: Inventory, Dec. 31, 2019 $ 82,868 Purchases 615,840 Goods available for sale $ 698,700 Inventory, Dec. 31, 2020 61,299 Cost of goods sold 637, 410 Gross profit from sales $ 478,590 Operating expenses 288,360 Operating profit $ 199, 230 Interest expense 12,988 Profit before taxes $177,330 Income taxes 19,614 Profit $ 157,716 Outdoor Waterworks Inc. Balance Sheet December 31, 2020 Assets Cash Current non-strategic 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 Long-term note payable secured by mortgage on $ 23, 700 26, 288 53, 580 12,86e 61,29 6,86e 384,020 $516,990 5 49.440 6,548 11e Prepaid expenses 6,060 Plant and equipment, net 334,020 Total assets $516,990 Elabilities and Equity Accounts payable $ 49,440 Accrued wages payable 6,540 Income taxes payable 7,410 Long-term note payable, secured by mortgage on plant 118,5ep Common shares, 160,880 shares 199,5ee Retained earnings 135,600 Total liabilities and equity $516,990 Assume all sales were on credit. Also assume the long-term note payable is due in 2023, with no current portion. On the December 31, 2019, balance sheet, the assets totalled $440,220, common shares were $199,500, and retained earnings were $112.140 Required: Calculate the following: (Use 365 days in a year. Do not round your Intermediate calculations. Round the answers to 2 decimal places.) to 1 ho 101 days mes days a. Current ratio b. Quick ratio c. Days' sales uncollected o inventory turnover e. Days' sales in inventory Ratio of pledged plant assets to secured liabilities Times interest earned Profit margin Total asset turnover Return on totale! K Return on common shareholders equity to 1 smes 26 mes 196 % times h. Profit margin i. Total asset turnover j. Return on total assets k. Return on common shareholders' equity %6 %6 Analysis Component: Identify whether the ratios calculated above are favourable or unfavourable to the Industry averages. Industry Average 1.6.1 1.1:1 21 days 51bmes 70 days a. Current ratio b. Quick ratio c. Days' sales uncollected d. Inventory turnover e. Days' sales in inventory f. Ratio of pledged plant assets to secured liabilities 9. Times interest earned h. Profit margin Total asset turnover 1. Return on total assets K Return on common shareholders equity 1.4.1 50 times 1456 23 times 2096 32.7194

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