1 The 2023 financial statements of Outdoor Waterworks Inc. follow: 45 point Outdoor Waterworks Inc. Income...

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1 The 2023 financial statements of Outdoor Waterworks Inc. follow: 45 point Outdoor Waterworks Inc. Income Statement For Year Ended December 31, 2023 Sepped Net sales Cost of goods sold: Pr Rurances 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 $986,000 $ 76,360 602,840 $679,200 59,340 619,860 $366,140 275,300 $ 90,700 11,000 $ 79,100 10,964 $ 60,216 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 Common shares, 160,000 shares Retained earnings Total liabilities and equity $22,400 24,720 52,280 10,760 39,340 5,800 327,520 $502,020 $ 48,920 6.280 7.020 114,600 193,000 133,000 $502,820 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 $433,720, common shares were $193,000, and retained earnings were $108,240. Required: Calculate the following: (Use 365 days in a year. Do not round your intermediate calculations. Round the answers to 2 decimal places.) Current ratio b. Quick ratio Days sales uncollected to 1 to 1 days d Inventory turnover times eDays sales in inventory days Ratio of pledged plant assets to secured liabilities to 1 g Times interest eamed times h Profit margin Total asset turnover Return on total assets Return on common shareholders' equity times Analysis Component: Identify whether the ratios calculated above are favourable or unfavourable to the industry averages. Current ratio b. Quick ratio Days' sales uncollected d Inventory turnover Days' sales in inventory Ratio of pledged plant assets to secured abilities Times interest eamed Prufit margin Total asset turnover Return on total assets Return on common shareholders' equity Industry Average 161 1.11 21 days 5 times 70 days 1.41 50 times 14% 2.3 times 20% 32.7% 1 The 2023 financial statements of Outdoor Waterworks Inc. follow: 45 point Outdoor Waterworks Inc. Income Statement For Year Ended December 31, 2023 Sepped Net sales Cost of goods sold: Pr Rurances 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 $986,000 $ 76,360 602,840 $679,200 59,340 619,860 $366,140 275,300 $ 90,700 11,000 $ 79,100 10,964 $ 60,216 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 Common shares, 160,000 shares Retained earnings Total liabilities and equity $22,400 24,720 52,280 10,760 39,340 5,800 327,520 $502,020 $ 48,920 6.280 7.020 114,600 193,000 133,000 $502,820 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 $433,720, common shares were $193,000, and retained earnings were $108,240. Required: Calculate the following: (Use 365 days in a year. Do not round your intermediate calculations. Round the answers to 2 decimal places.) Current ratio b. Quick ratio Days sales uncollected to 1 to 1 days d Inventory turnover times eDays sales in inventory days Ratio of pledged plant assets to secured liabilities to 1 g Times interest eamed times h Profit margin Total asset turnover Return on total assets Return on common shareholders' equity times Analysis Component: Identify whether the ratios calculated above are favourable or unfavourable to the industry averages. Current ratio b. Quick ratio Days' sales uncollected d Inventory turnover Days' sales in inventory Ratio of pledged plant assets to secured abilities Times interest eamed Prufit margin Total asset turnover Return on total assets Return on common shareholders' equity Industry Average 161 1.11 21 days 5 times 70 days 1.41 50 times 14% 2.3 times 20% 32.7%