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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 $1,036,000 $ $ $ $ 78,860 607,840 $ 686,700 60,090 626,610 409,390 280,360 129,030 12,100 $ 116,930 19,214 97,716

The 2023 financial statements of Outdoor Waterworks Inc. follow: Outdoor Waterworks Inc. Balance Sheet December 31, 2023 Assets Cash \begin{tabular}{r} $22,900 \\ 25,320 \\ 52,780 \\ 11,260 \\ 60,090 \\ 5,900 \\ 330,020 \\ \hline$508,270 \\ \hline \\ $49,120 \\ 6,380 \\ 7,170 \end{tabular} 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 Common shares, 160,000 shares Retained earnings Total liabilities and equity \begin{tabular}{r} 116,100 \\ 195,500 \\ 134,000 \\ \hline$508,270 \\ \hline \end{tabular} 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 $436,220, common shares were $195,500, and retained earnings were $109740 Required: Calculate the following: (Use 365 days in o 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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