The $2023$ financial statements of Outdoor Waterworks Inc. follow:

Outdoor Waterworks Inc.

Income Statement

For Year Ended December $31,2023$

Net sales $ $1,046,000$

Cost of goods sold:

Inventory, Dec. $31,2022$ $ $79,360$

Purchases $608,840$

Goods available for sale $ $688,200$

Inventory, Dec. $31,202360,240$

Cost of goods sold $627,960$

Gross profit from sales $ $418,040$

Operating expenses $281,360$

Operating profit $ $136,680$

Interest expense $12,200$

Profit before taxes $ $124,480$

Income taxes $19,264$

Profit $ $105,216$

Outdoor Waterworks Inc.

Balance Sheet

December $31,2023$

Assets

Cash $ $23,000$

Current non$-$strategic investments $25,440$

Accounts receivable, net $52,880$

Notes receivable $11,360$

Inventory $60,240$

Prepaid expenses $5,920$

Plant and equipment, net $330,520$

Total assets $ $509,360$

Liabilities and Equity

Accounts payable $ $49,160$

Accrued wages payable $6,400$

Income taxes payable $7,200$

Long$-$term note payable, secured by mortgage on plant $116,400$

Common shares, $160,000$ shares $196,000$

Retained earnings $134,200$

Total liabilities and equity $ $509,360$

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 $$436,720,$ common shares were $$196,000,$ and retained earnings were $$110,040.$

Required:

Calculate the following: $($Use $365$ days in a 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.