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The 2020 financial statements of Outdoor Waterworks Inc. follow:

Outdoor Waterworks Inc.
Income Statement
For Year Ended December 31, 2020
Net sales	$	996,000
Cost of goods sold:
Inventory, Dec. 31, 2019	$	76,860
Purchases		603,840
Goods available for sale	$	680,700
Inventory, Dec. 31, 2020		59,490
Cost of goods sold		621,210
Gross profit from sales	$	374,790
Operating expenses		276,360
Operating profit	$	98,430
Interest expense		11,700
Profit before taxes	$	86,730
Income taxes		19,014
Profit	$	67,716

Outdoor Waterworks Inc.
Balance Sheet
December 31, 2020
Assets
Cash	$	22,500
Current non-strategic investments		24,840
Accounts receivable, net		52,380
Notes receivable		10,860
Inventory		59,490
Prepaid expenses		5,820
Plant and equipment, net		328,020
Total assets	$	503,910
Liabilities and Equity
Accounts payable	$	48,960
Accrued wages payable		6,300
Income taxes payable		7,050
Long-term note payable, secured by mortgage on plant		114,900
Common shares, 160,000 shares		193,500
Retained earnings		133,200
Total liabilities and equity	$	503,910

Assume all sales were on credit. Also assume the long-term note payable is due in 2023, with no current portion. On the December 31, 2019, balance sheet, the assets totalled $434,220, common shares were $193,500, and retained earnings were $108,540. 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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