The 2020 financial statements of Outdoor Waterworks Inc. follow: Outdoor Waterworks Inc. Income Statement For Year Ended December 31, 2020 51 Net sales Cost of goods sold: Inventory, Dec. 31, 2019 Purchases Goods available for sale Inventory, Dec. 31, 2020 Cost of goods sold Gross profit from sales Operating expenses Operating profit Interest expense Profit before taxes Income taxes Profit $986,000 $ 76,360 602,840 $679,200 59,340 619,860 $366,140 275,360 $ 90,780 11,600 $ 79,180 18,964 $ 60,216 Assets Cashi Outdoor Waterworks Inc. Balance Sheet December 31, 2020 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 plant Common shares, 160,000 shares Retained earnings Total liabilities and equity $ 22,400 24,720 52,280 10,760 59,340 5,800 327,520 $502,820 $ 48,920 6,280 7,020 114,600 193,000 133,000 $502,820 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 $433,720, common shares were $193,000, and retained earnings were $108,240. Required: Calculate the following: (Use 365 days in a year. Do not round your intermediate calculations. Round the answers to 2 decimal places.) 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 $433,720, common shares were $193,000, and retained earnings were $108,240. Required: Calculate the following: (Use 365 days in a year. Do not round your intermediate calculations. Round the answers to 2 decimal places.) a. Current ratio b. Quick ratio to 1 to 1 c Days' sales uncollected days d Inventory turnover e Days' sales in inventory g Times interest earned times days Ratio of pledged plant assets to secured liabilities to 11 times h Profit margin Total asset turnover. % times Return on total assets k Return on common shareholders' equity % % Analysis Component: Identify whether the ratios calculated above are favourable or unfavourable to the industry averages. a. Current rtio b. Quick ratio c. Days' sales uncollected d. Inventory turnover e. Days' sales in inventory f. Ratio of pledged plant assets to secured liabilities g. Times interest earned h. Profit margin iTotal asset turnover iReturn on total assets k Return on common shareholders equity Industry Average 1.6.1 1.1:1 21 days 5 times 70 days 1.4:1 50 times 14 % 2.3 times 20 % 32.7 %