The 2023 financial statements of Outdoor Waterworks Inc. follow: Outdoor Waterworks Inc. Income Statement For Year Ended December 31, 2023 Net sales Cost of goods sold: 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 $1,096,000 $ 81,860 613,840 $ 695,700 60,990 634,710 $ 461,290 286,360 $ 174,930 12,700 $ 162,230 19,514 $ 142,716 Outdoor Waterworks Inc. Balance Sheet December 31, 2023 Assets Cash $ 23,500 Current non-strategic investments 26,040 Accounts receivable, net 53,380 Notes receivable 11,860 Inventory 60,990 Prepaid expenses 6,020 Plant and equipment, net 333,020 Total assets $514,810 Liabilities and Equity Accounts payable Accrued wanes navahle $49,360 6500 Assets December 31, 2023 Cash Current non-strategic investments $ 23,500 26,040 Accounts receivable, net Notes receivable Inventory Prepaid expenses Plant and equipment, net Total assets Liabilities and Equity 53,380 11,860 60,990 6,020 333,020 $514,810 Accounts payable $ 49,360 Accrued wages payable 6,500 Income taxes payable 7,350 Long-term note payable, secured by mortgage on plant 117,900 Common shares, 160,000 shares 198,500 Retained earnings 135,200 Total liabilities and equity $514,810 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 $439,220, common shares were $198,500, and retained earnings were $111,540. 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 to 1 b. Quick ratio C. Days' sales uncollected d. Inventory turnover to 1 days + times e Davs' sales in inventory davs S 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 $439,220, common shares were $198,500, and retained earnings were $111,540. 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 b. Quick ratio C. Days' sales uncollected d. Inventory turnover e. Days' sales in inventory f. Ratio of pledged plant assets to secured liabilities g Times interest earned to 1 to 1 days times days to 1 times h. Profit margin i. Total asset turnover % times j. Return on total assets % k. Return on common shareholders' equity % Analysis Component: Identify whether the ratios calculated above are favourable or unfavourable to the industry averages. a Current ratio b. Quick ratio c. Days' sales uncollected d. Inventory turnover e. Days' sales in inventory Industry Average 1.6.1 1.1:1 21 days 5 times 70 days f. Ratio of pledged plant assets to secured liabilities 1.4.1 g. Times interest earned 50 times h. Profit margin 14 % i Total asset turnover 2.3 times j. Return on total assets 20 % k. Return on common shareholders' equity 32.7 %