Analysis Component: Identify whether the ratios calculated above are favourable or unfavourable to the industry averages. Industry Average a. Current ratio 1.6:1 b. Quick ratio 1.1:1 C. Days' sales uncollected 21 days d. Inventory turnover 5 times e. Days' sales in inventory 70 days f. Ratio of pledged plant assets to secured liabilities 1 4:1 g. Times interest earned 50 times h . Profit margin 14 % Total asset turnover 2.3 times J. Return on total assets 20 % k. Return on common shareholders' equity 32.7 %Analysis Component: Identify whether the ratios calculated above are favourable or unfavourable to the industry averages. Industry Average a. Current ratio 1.6:1 b. Quick ratio 1.1:1 C. Days' sales uncollected 21 days d. Inventory turnover 5 times e. Days' sales in inventory 70 days f. Ratio of pledged plant assets to secured liabilities 1 4:1 g. Times interest earned 50 times h . Profit margin 14 % Total asset turnover 2.3 times J. Return on total assets 20 % k. Return on common shareholders' equity 32.7 %Accrued wages payable 6, 640 Income taxes payable 7,560 Long-term note payable, secured by mortgage on plant 120,060 Common shares, 160,000 shares 202,090 Retained earnings 136, 600 Total liabilities and equity $522,440 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 $442,720, common shares were $202,000, and retained earnings were $113,640. Required: Calculate the following: (Use 365 days in a year. Do not round your intermediate calculations. Round the answers to 2 decimal places.) a Current ratio to 1 b. Quick ratio to 1 C. Days' sales uncollected days d Inventory turnover times e. Days' sales in inventory days f. Ratio of pledged plant assets to secured liabilities to 1 g. Times interest earned times h. Profit margin Total asset turnover times Return on total assets K. Return on common shareholders' equityAccrued wages payable 6, 640 Income taxes payable 7,560 Long-term note payable, secured by mortgage on plant 120,060 Common shares, 160,000 shares 202,090 Retained earnings 136, 600 Total liabilities and equity $522,440 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 $442,720, common shares were $202,000, and retained earnings were $113,640. Required: Calculate the following: (Use 365 days in a year. Do not round your intermediate calculations. Round the answers to 2 decimal places.) a Current ratio to 1 b. Quick ratio to 1 C. Days' sales uncollected days d Inventory turnover times e. Days' sales in inventory days f. Ratio of pledged plant assets to secured liabilities to 1 g. Times interest earned times h. Profit margin Total asset turnover times Return on total assets K. Return on common shareholders' equityThe 2020 financial statements of Outdoor Waterworks Inc. fol Outdoor Waterworks Inc. Income Statement For Year Ended December 31, 2020 Net sales $1, 166, 000 Cost of goods sold: Inventory, Dec. 31, 2019 to 85 , 360 Purchases 620, 840 Goods available for sale $ 706, 200 Inventory, Dec. 31, 2020 62, 040 Cost of goods sold 644, 160 Gross profit from sales $ 521 , 840 Operating expenses 293 , 360 Operating profit $ 228, 480 Interest expense 13 , 400 Profit before taxes $ 215, 080 Income taxes 19, 864 Profit $ 195, 216 Outdoor Waterworks Inc. Balance Sheet December 31, 2020 Assets Cash $ 24, 200 Current non-strategic investments 26, 880 Accounts receivable, net 54,080 Notes receivable 12, 560 Inventory 62, 040 Prepaid expenses 6, 160 Plant and equipment, net 336, 520 Total assets $522, 440 Liabilities and Equity Accounts payable $ 49, 640 Accrued wages payable 6, 640The 2020 financial statements of Outdoor Waterworks Inc. fol Outdoor Waterworks Inc. Income Statement For Year Ended December 31, 2020 Net sales $1, 166, 000 Cost of goods sold: Inventory, Dec. 31, 2019 to 85 , 360 Purchases 620, 840 Goods available for sale $ 706, 200 Inventory, Dec. 31, 2020 62, 040 Cost of goods sold 644, 160 Gross profit from sales $ 521 , 840 Operating expenses 293 , 360 Operating profit $ 228, 480 Interest expense 13 , 400 Profit before taxes $ 215, 080 Income taxes 19, 864 Profit $ 195, 216 Outdoor Waterworks Inc. Balance Sheet December 31, 2020 Assets Cash $ 24, 200 Current non-strategic investments 26, 880 Accounts receivable, net 54,080 Notes receivable 12, 560 Inventory 62, 040 Prepaid expenses 6, 160 Plant and equipment, net 336, 520 Total assets $522, 440 Liabilities and Equity Accounts payable $ 49, 640 Accrued wages payable 6, 640