The 2020 financial statements of Outdoor Waterworks Inc. follow 3 30 points Skipped Outdoor Waterworks Inc. Income Statement For Year Ended December 31, 2020 Net sales $1,086,000 Cost of goods sold: Inventory, Dec. 31, 2019 $ 81,360 Purchases 612,840 Goods available for sale $ 694,200 Inventory, Dec. 31, 2020 60,840 Cost of goods sold 633, 360 Gross profit from sales $ 452,640 Operating expenses 285, 360 Operating profit $ 167,280 Interest expense 12,600 Profit before taxes $ 154,680 Income taxes 19,464 Profit $ 135,216 Print Outdoor Waterworks Inc. Balance Sheet December 31, 2020 Assets Cash Current non-strategic investments Accounts receivable, net Notes receivable Inventory Prepaid expenses $ 23,400 25,920 53,280 11,760 69,840 6,000 odleware Saved Help Save 3 Wood Outdoor Waterworks Inc. Balance Sheet December 31, 2020 Assets Cash $ 23,00 Current non-strategic investments 25,920 Accounts receivable, net 53,280 Notes receivable 11,760 Inventory 60,840 Prepaid expenses 6,000 plant and equipment, net 332.520 Total assets 5513,720 Liabilities and Equity Accounts payable $ 49,320 Accrued wages payable 6,480 Income taxes payable Long-ters note payable, secured by mortgage on plant 117,600 Common shares, 160,000 shares 198,000 Retained taenings 135.000 Total liabilities and equity $513,720 P Assume all sales were on credit. Also assume the fong-term note payable is due in 2023 with no current portion on the December 31 2019, balance sheet the assets totalled $438,720, common shares were $198.000 and retained earings were 5111240 Required: Calculate the following (Use 365 days in a year. Do not round your intermediate calculations. Round the answers to 2 decimal places) 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 $438,720, common shares were $198.000, and retained earnings were $111.240 Required: Calculate the following: (Use 365 days in a year. Do not round your intermediate calculations. Round the answers to 2 decimal places.) to 1 to 1 a Current ratio b Quick ratio c Days' sales uncollected d Inventory turnover Days' sales in inventory + Ratio of pledged plant assets to secured liabilities 9 Times interest eamed n Profit margin Total asset turnover Return on total assets k Return on common shareholders oquity days times days 10 1 times times Analysis Component: Identify whether the ratios calculated above are favourable or unfavourable to the industry averages. Industry Average 1.6.1 1.1.1 21 days 5 times 70 days a. Current ratio b. Quick ratio c Days' sales uncollected d. Inventory turnover e Days' sales in inventory Ratio of pledged plant assets to secured liabilities 9. Times interest earned h Profit margin Total asset turnover Return on total assets K Return on common shareholders' equity 1.4.1 50 times 14 % 2.3 times 20% 32 71%