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: S Inventory, Dec. 31, 2022 Purchases Goods available for sale Inventory, Dec. 31, 2023 Cost of goods sold Gross profit from sales. Operating expenses Operating profit Interest expense Profit before taxes 77,860 605,840 $ 683,700 59,790 623,910 $ 392,090 278,360 $ 113,730 11,900 101,830 Income taxes Profit Outdoo 19,114 $ 82,716 Outdoor Waterworks Inc. Balance Sheet December 31, 2023 Assets Cash Current non-strategic investments Accounts receivable, net Notes receivable Inventory Prepaid expenses Plant and equipment, net Total assets Liabilities and Equity Accounts payable $ 22,700 25,080 52,580 11,060 59,790 5,860 329,020 $506,090 $ 49,040 Accrued wages payable Income taxes payable Long-term note payable, secured by mortgage on plant Common shares, 160,000 shares Retained earnings Total liabilities and equity 6,340 7,110 115,500 194,500 133,600 $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.) Analysis Component: Identify whether the ratios calculated above are favourable or unfavourable to the industry averages. Industry Average Required: Calculate the following: (Use 365 days in a year. Do not round your intermediate calculations. Round the answers to 2 decimal places.) a. Current ratio 274 to 1 b. Quick ratio 1.69 to 1 C Days' sales uncollected 18.89 days d Inventory turnover 10.44 times e Days' sales in inventory 34 98 days Ratio of pledged plant assets to secured 1 2.85 to 1 liabilities O Times interest earned h Profit margin L Total asset turnover Return on total assets k Return on common shareholders' equity 9.56 times 8.14% 2.16 times 17.57% 26 19 % Analysis Component: Identify whether the ratios calculated above are favourable or unfavourable to the industry averages. Industry Average a Current ratio 1.6.1 Favourable b. Quick ratio 1.11 Favourable C Days' sales uncollected 21 days Favourable d Inventory turnover 5 times Favourable e Days' sales in inventory 70 days Favourable Ratio of pledged plant assets to secured t 1.4.1 Favourable liabilities g Times interest earned 50 times Unfavourable h Profit margin 14 % Favourable L Total asset turnover 23 timos Favourable J Return on total assets 20 % Favourable k- Return on common shareholders' equity 32,7 % Favourable