The 2023 financial statements of Outdoor Waterworks Inc. follow:

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 $432,720, common shares were $192,000, and retained earnings were $107,640.

RequiredCalculate the following: 

(a) Current ratio, 

(b) Quick ratio, 

(c) Days’ sales uncollected, 

(d) Inventory turnover, 

(e) Days’ sales in inventory, 

(f) Ratio of pledged plant assets to secured liabilities, 

(g) Times interest earned, 

(h) Profit margin, 

(i) Total asset turnover, 

(j) Return on total assets, and 

(k) Return on common shareholders’ equity.

Analysis Component:Identify whether the ratios calculated above compare favourably or unfavourably to the industry averages in Exhibit 17.11.

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Outdoor Waterworks Inc. Income Statement For Year Ended December 31, 2023 Net sales $966,000 Cost of goods sold: Inventory, Dec. 31, 2022 Purchases $ 75,360 600,840 $676,200 59,040 617,160 $348,840 273,360 $ 75,480 11,400 $ 64,080 18,864 $ 45,216 Outdoor Waterworks Inc. Balance Sheet December 31, 2023 Assets Cash Current non-strategic investments Accounts receivable, net Notes receivable Inventory 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 Prepaid expenses Plant and equipment, net Total assets Liabilities and Equity Accounts payable Accrued wages payable Income taxes payable $ 22,200 52,080 10,560 59,040 5,760 326,520 $500,640 $ 48,840 6,240 6,960 Long-term note payable, secured by mortgage on plant 114,000 Common shares, 160,000 shares 192,000 Retained earnings Total liabilities and equity 132,600 $500,640