The 2023 financial statements of Outdoor Waterworks Inc. follow:

Outdoor Waterworks Inc. Income Statement For Year Ended December 31, 2023 Net sales $ 1,146,000 Cost of goods sold: Inventory, Dec. 31, 2022 $ 84,360 Purchases 618,840 Goods available for sale $ 703,200 Inventory, Dec. 31, 2023 61,740 Cost of goods sold 641,460 Gross profit from sales $ 504,540 Operating expenses 291,360 Operating profit $ 213,180 Interest expense 13,200 Profit before taxes $ 199,980 Income taxes 19,764 Profit $ 180,216

Outdoor Waterworks Inc. Balance Sheet December 31, 2023 Assets Cash $ 24,000 Current non-strategic investments 26,640 Accounts receivable, net 53,880 Notes receivable 12,360 Inventory 61,740 Prepaid expenses 6,120 Plant and equipment, net 335,520 Total assets $ 520,260 Liabilities and Equity Accounts payable $ 49,560 Accrued wages payable 6,600 Income taxes payable 7,500 Long-term note payable, secured by mortgage on plant 119,400 Common shares, 160,000 shares 201,000 Retained earnings 136,200 Total liabilities and equity $ 520,260

Assume all sales were on credit. Also assume the long-term note payable is due in 2026, with no current portion. On the December 31, 2022, balance sheet, the assets totalled $441,720, common shares were $201,000, and retained earnings were $113,040.

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.

Common-size and trend percentages for a companys net sales, cost of goods sold, and expenses follow:

Common-Size Percentages Trend Percentages 2023 2022 2021 2023 2022 2021 Net sales 100.0 % 100.0 % 100.0 % 108.6 % 107.2 % 100.0 % Cost of goods sold 73.8 72.1 68.0 115.8 110.9 100.0 Expenses 17.7 13.9 15.6 111.4 104.9 100.0

Required: a. Calculate the profit percentage for 2021, 2022 and 2023. (Round the final answers to 2 decimal places.)

b. Determine whether the companys profit increased, decreased, or remained unchanged during this three-year period.