The 2023 financial statements of Outdoor Waterworks Inc. follow: Outdoor Waterworks Inc. Income Statement For Year Ended December 31, 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 2023 $1,156,000 $ 84,860 619,840 $ 704,700 61,890 642,810 $ 513,190 292,360 $ 220,830 13,300 $ 207,530 19,814 $187,716 Assets Cash Outdoor Waterworks Inc. Balance Sheet December 31, 2023 Current non-strategic investments Accounts receivable, net Notes receivable Inventory Prepaid expenses Plant and equipment, net Total assets Liabilities and Equity Accounts payable Accrued wages payable $ 24,100 26,760 53,980 12,460 61,890 6,140 336,020 $521,350 $ 49,600 6,620 Denu 11 BEE Next Assets Cash Outdoor Waterworks Inc. Balance Sheet December 31, 2023 Current non-strategic investments Accounts receivable, net Notes receivable Inventory Prepaid expenses Plant and equipment, net Total assets Liabilities and Equity Accounts payable Accrued wages payable Income taxes payable Long-term note payable, secured by mortgage on plant Connon shares, 160,000 shares Retained earnings Total liabilities and equity $ 24,100 26,760 53,980 12,460 61,890 6,140 336,020 $521,350 $ 49,600 6,620 7,530 119,700 201,500 136,400 $521,350 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 $442,220, common shares were $201,500, and retained earnings were $113,340. 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 1.93 to 1 1.64 to 11 17.00 days 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 $442,220, common shares were $201,500, and retained earnings were $113,340. 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 d Inventory turnover 1.93 to 1 Days' sales uncollected e Days' sales in inventory 1.64 to 1 17.00 days times days Ratio of pledged plant assets to secured liabilities g. Times interest earned to 1 times h Profit margin Total asset turnover Return on total assets % times % k Return on common shareholders' equity % Analysis Component: Identify whether the ratios calculated above are favourable or unfavourable to the industry averages. Industru 1-Ch 17 15 k. Return on common shareholders' equity Saved 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 1 Ratio of pledged plant assets to secured liabilities 1.41 g Times interest earned h. Profit margin Total asset turnover Return on total assots k Return on common shareholders' equity 50 times 14 % 23 times 20 % 32.7%