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The 2023 financial statements of Outdoor Waterworks Inc. follow: Outdoor Waterworks Inc. Income Statement For Year Ended December 31, 2023 Net sales $ 1,016,000 Cost
The 2023 financial statements of Outdoor Waterworks Inc. follow: Outdoor Waterworks Inc. Income Statement For Year Ended December 31, 2023 Net sales $ 1,016,000 Cost of goods sold: Inventory, Dec. 31, 2022 $ 77,860 Purchases 605,840 Goods available for sale $ 683,700 Inventory, Dec. 31, 2023 59,790 Cost of goods sold 623,910 Gross profit from sales $ 392,090 Operating expenses 278,360 Operating profit $ 113,730 Interest expense 11,900 Profit before taxes $ 101,830 Income taxes 19,114 Profit $ 82,716 Outdoor Waterworks Inc. Balance Sheet December 31, 2023 Assets Cash $ 22,700 Current non-strategic investments 25,080 Accounts receivable, net 52,580 Notes receivable 11,060 Inventory 59,790 Prepaid expenses 5,860 Plant and equipment, net 329,020 Total assets $ 506,090 Liabilities and Equity Accounts payable $ 49,040 Accrued wages payable 6,340 Income taxes payable 7,110 Long-term note payable, secured by mortgage on plant 115,500 Common shares, 160,000 shares 194,500 Retained earnings 133,600 Total liabilities and equity $ 506,090 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 $435,220, common shares were $194,500, and retained earnings were $109,140. Required: Calculate the following: (Use 365 days in a year. Do not round your intermediate calculations. Round the answers to 2 decimal places.)
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