The 2020 financial statements of Outdoor Waterworks Inc. follow: Outdoor Waterworks Inc. Income Statement For Year Ended December 31, 2020 Net sales $1,006,000 Cost of goods sold: Inventory, Dec. 31, 2019 $ 77,360 Purchases 604,840 Goods available for sale $ 682,200 Inventory, Dec. 31, 2020 59,640 Cost of goods sold 622,560 Gross profit from sales $ 383,440 Operating expenses 277, 360 Operating profit $ 106,080 Interest expense 11,800 Profit before taxes $ 94,280 Income taxes 19,064 Profit $ 75,216 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 $ 22,600 24,960 52,480 10,960 59,640 5,840 328,520 $505,000 $ 49,000 6,320 7,080 115,200 194,000 133,400 $505,000 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 $434,720, common shares were $194,000, and retained earnings were $108,840. 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 a. Current ratio b. Quick ratio c. Days' sales uncollected d. Inventory turnover to 1 days times Days' sales in inventory days to 1 times % f. Ratio of pledged plant assets to secured liabilities g. Times interest earned h. Profit margin i. Total asset turnover j. Return on total assets k. Return on common shareholders' equity times Analysis Component: Identify whether the ratios calculated above are favourable or unfavourable to the industry averages. Industry Average 1.6:1 1.1:1 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 Times interest earned h. Profit margin Total asset turnover 21 days 5 times 70 days 1.4:1 50 times 14 % 2.3 times 20 % 32.7 % j. Return on total assets k. Return on common shareholders' equity