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The 2020 financial statements of Outdoor Waterworks Inc. follow: Outdoor Waterworks Ine. Income Statement For Year Ended December 31, 2020 Net sales $1,036,000 Cost of

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The 2020 financial statements of Outdoor Waterworks Inc. follow: Outdoor Waterworks Ine. Income Statement For Year Ended December 31, 2020 Net sales $1,036,000 Cost of goods sold: Inventory, Dec. 31, 2019 S 78,860 Purchases 607,840 Goods available for sale $ 686,700 Inventory, Dec. 31, 2020 60,090 Cost of goods sold 626,620 Gross profit from sales $ 409,390 Operating expenses 280, 360 Operating profit $ 129,030 Interest expense 12,100 Profit before taxes $ 116,930 Income taxes 19,214 Profit $ 97,716 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 plant Common shares, 160,000 shares Retained earnings Total liabilities and equity $ 22,900 25,320 52,780 11,260 60,090 5,900 330,020 $508,270 $ 49,120 6,380 7,170 116,100 195,500 134,000 $508,270 7. 170 payable, secured by mortgage on plant Common shares, 160.000 shares Retained earnings Total liabilities and equity 116,109 195,500 114.000 $508,270 Assume all sales were on credit. Also assume the long-term note payable is due in 2023, with no current portion on the December 2019, balance sheet, the assets totalled $436,220, common shares were $195,500, and retained earnings were 5109740 Required: Calculate the following: (Use 365 days in a year. Do not round your Intermediate calculations. Pound the answers to 2 decimal places.) to 1 to 1 days times days to 1 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 j. Return on total assets k. Return on common shareholders' equity times % times % % Analysis Component: Identify whether the ratios calculated above are favourable or unfavourable to the industry averages. a. Current ratio b. Quick ratio c. Days' sales uncollected d. Inventory turnover e. Days' sales in inventory 1. Ratio of pledged plant assets to secured liabilities g. Times interest earned h. Profit margin 1. Total asset turnover 1. Return 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 %

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