The 2023 financial statements of Outdoor Waterworks Inc. follow:

Outdoor Waterworks Inc.
Income Statement
For Year Ended December 31, 2023
Net sales	$	1,076,000
Cost of goods sold:
Inventory, Dec. 31, 2022	$	80,860
Purchases		611,840
Goods available for sale	$	692,700
Inventory, Dec. 31, 2023		60,690
Cost of goods sold		632,010
Gross profit from sales	$	443,990
Operating expenses		284,360
Operating profit	$	159,630
Interest expense		12,500
Profit before taxes	$	147,130
Income taxes		19,414
Profit	$	127,716

Outdoor Waterworks Inc.
Balance Sheet
December 31, 2023
Assets
Cash	$	23,300
Current non-strategic investments		25,800
Accounts receivable, net		53,180
Notes receivable		11,660
Inventory		60,690
Prepaid expenses		5,980
Plant and equipment, net		332,020
Total assets	$	512,630
Liabilities and Equity
Accounts payable	$	49,280
Accrued wages payable		6,460
Income taxes payable		7,290
Long-term note payable, secured by mortgage on plant		117,300
Common shares, 160,000 shares		197,500
Retained earnings		134,800
Total liabilities and equity	$	512,630

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 $438,220, common shares were $197,500, and retained earnings were $110,940.

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.