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 $1,046,000 $ 79,360 608,840 $ 688,200 60,240 627,960 $ 418,040 281,360 $ 136,680 12,200 $ 124,480 19,264 $ 105,216 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 $ 23,000 25,440 52,880 11,360 60,240 5,920 330,520 $509,360 $ 49,160 6,400 7,200 116,400 Assets Cash Outdoor Waterworks Inc. Belance Sheet December 31, 2025 Current non-strategic Investments Accounts receivable, net Notes receivable. Inventory Prepaid expenses $23,000 25,440 52,880 11,368 60,240 5,920 Plant and equipment, net 330,520 Total assets $509,360 Liabilities and Equity. Accounts payable $49,160 Accrued wages payable 6,400 Income taxes payable 7,200 Long-term note payable, secured by mortgage on plant 116,400 Common shares, 160,000 shares 196,000 Betained earnings 134,200 Total liabilities and equity $509,360 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 $436,720, common shares were $196,000, and retained earnings were $110.040 Required: Calculate the following: (Use 365 days in a year. Do not round your intermediate calculations. Round the answers to 2 decimal places.) 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 fRatio of pledged plant assets to secured liabilities g Times interest eamed - to 1 to 1 days times days to 1 times h Profit margin Total asset turnover Return on total assets k Return on common shareholders' equity % mes % % 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 i d. Inventory turnover. e Days' sales in inventory 1 Ratio of pledged plant assets to secured liabilities g Times interest earned h. Profit margin Total asset turnover Return on total assets k. Return on common shareholders' equity Industry Average 1.6.1 1.1:1 21 days 5 times 70 days 1.41 50 times 14 % 2.3 times 20% 32.7 %