The 2020 financial statements of Outdoor Waterworks Inc. follow: Outdoor Waterworks Inc. Income Statement For Year Ended December 31, 2020 Net sales $ 966,000 Cost of goods sold: Inventory, Dec. 31, 2019 $ 75,360 Purchases 600,840 Goods available for sale $ 676,200 Inventory, Dec. 31, 2020 59,040 Cost of goods sold 617,160 Gross profit from sales $ 348,840 Operating expenses 273,360 Operating profit $ 75,480 Interest expense 11,400 Profit before taxes $ 64,080 Income taxes 18,864 Profit $ 45,216 Outdoor Waterworks Inc. Balance Sheet December 31, 2020 Assets Cash $ 22,200 Current non-strategic investments 24,480 Accounts receivable, net 52,080 Notes receivable 10,560 Inventory 59,040 Prepaid expenses 5,760 Plant and equipment, net 326,520 Total assets $ 500,640 Liabilities and Equity Accounts payable $ 48,840 Accrued wages payable 6,240 Income taxes payable 6,960 Long-term note payable, secured by mortgage on plant 114,000 Common shares, 160,000 shares 192,000 Retained earnings 132,600 Total liabilities and equity $ 500,640 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 $432,720, common shares were $192,000, and retained earnings were $107,640. 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.