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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 $ 1,116,000 Cost

The 2023 financial statements of Outdoor Waterworks Inc. follow:

Outdoor Waterworks Inc.
Income Statement
For Year Ended December 31, 2023
Net sales $ 1,116,000
Cost of goods sold:
Inventory, Dec. 31, 2022 $ 82,860
Purchases 615,840
Goods available for sale $ 698,700
Inventory, Dec. 31, 2023 61,290
Cost of goods sold 637,410
Gross profit from sales $ 478,590
Operating expenses 288,360
Operating profit $ 190,230
Interest expense 12,900
Profit before taxes $ 177,330
Income taxes 19,614
Profit $ 157,716

Outdoor Waterworks Inc.
Balance Sheet
December 31, 2023
Assets
Cash $ 23,700
Current non-strategic investments 26,280
Accounts receivable, net 53,580
Notes receivable 12,060
Inventory 61,290
Prepaid expenses 6,060
Plant and equipment, net 334,020
Total assets $ 516,990
Liabilities and Equity
Accounts payable $ 49,440
Accrued wages payable 6,540
Income taxes payable 7,410
Long-term note payable, secured by mortgage on plant 118,500
Common shares, 160,000 shares 199,500
Retained earnings 135,600
Total liabilities and equity $ 516,990

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 $440,220, common shares were $199,500, and retained earnings were $112,140. 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.

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