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: ed 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 Income taxes Profit $ 77,860 605,840 $ 683,700 59,790 623,910 $ 392,090 278,360 $ 113,730 11,900 $ 101,830 19,114 $ 82,716 -d Assets Cash Outdoor Waterworks Inc. Balance Sheet December 31, 2023 $ 22,700 Current non-strategic investments 25,080 Accounts receivable, net Notes receivable Inventory 52,580 11,060 59,790 Prepaid expenses Plant and equipment, net Total assets Liabilities and Equity 5,860 329,020 $506,090 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 d 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.) a Current ratio 38.59 to 1 b. Quick ratio 8.14 to 1 C Days' sales uncollected 18.89 days d. Inventory turnover 2.43 times e Days' sales in inventory 34.98 days Ratio of pledged plant assets to secured t 285 to 1 abilities 9 Times interest earned 956 times h Profit margin 8.14 % L Total asset turnover 2.16 times Return on total assets 17 57 % k Return on common shareholders' equity 26 19% S 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: 1.1.1 Favourable C. Days' sales uncollected 21 days Favourable d. Inventory turnover 5 times Favourable e Days' sales in inventory 70 days Favourable 1 Ratio of pledged plant assets to secured liabilities 1.4:1 Favourable g Times interest earned i 50 times Unfavourable h Profit margin 14 % Unfavourable i Total asset turnover 2.3 times Unfavourable Return on total assets. 20 % Unfavourable k Return on common shareholders' equity 32.7 % Unfavourable