The 2023 financial statements of Outdoor Waterworks Inc. follow:

Outdoor Waterworks Inc.Income StatementFor Year Ended December 31, 2023Net sales$1,026,000 Cost of goods sold: Inventory, Dec. 31, 2022$78,360 Purchases 606,840 Goods available for sale$685,200 Inventory, Dec. 31, 2023 59,940 Cost of goods sold 625,260 Gross profit from sales$400,740 Operating expenses 279,360 Operating profit$121,380 Interest expense 12,000 Profit before taxes$109,380 Income taxes 19,164 Profit$90,216

Outdoor Waterworks Inc.Balance SheetDecember 31, 2023Assets Cash$22,800 Current non-strategic investments 25,200 Accounts receivable, net 52,680 Notes receivable 11,160 Inventory 59,940 Prepaid expenses 5,880 Plant and equipment, net 329,520 Total assets$507,180 Liabilities and Equity Accounts payable$49,080 Accrued wages payable 6,360 Income taxes payable 7,140 Long-term note payable, secured by mortgage on plant 115,800 Common shares, 160,000 shares 195,000 Retained earnings 133,800 Total liabilities and equity$507,180

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 $435,720, common shares were $195,000, and retained earnings were $109,440. 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.