12.24 (LO 1, 2, 3) Comprehensive financial statement analysis Koester, Inc., states in its 2020 10-K filing with the SEC, In October 2020, two major credit rating agencies changed Koester's long-term credit rating outlook to negative and one of the credit rating agencies reduced Koester's short-term credit rating." Koester's financial statements in $000) follow. Koester, Inc. Comparative Income Statement For the Year Ended December 31 2020 2019 2018 Sales revenue $5,179,016 $5,102,786 $4,960,100 Cost of goods sold 2,806,148 2,692,061 2,530,617 Gross profit 2,372,868 2,410,725 2,429,483 Operating expenses 1,708,339 1,679,908 1,643,773 Operating income 664,529 730,817 785,710 Interest expense, net 42,279 58,081 61,611 Other non-operating (income), net (29,799) (23,518) (16,755) Income before income tax 652,049 696,254 740,854 Income tax expense 235,030 123,531 203,222 Net income $ 417,019 $ 572,723 $ 537,632 Koester, Inc. Comparative Balance Sheet As of December 31 2020 2019 $1,156,835 759,033 418,633 302,649 2,637,150 586,526 1,532,816 $4,756,492 Assets Cash $997,734 Accounts receivable (net) 760,643 Inventory 376,897 Prepaid expenses and other current assets 277,226 Total current assets 2,412,500 Property, plant, & equipment (net) 547,104 Other assets 1,412,709 Total Assets $4,372,313 Liabilities and Stockholders' Equity Short-term borrowings $ 117,994 Current maturities of long-term debt 100,000 Accounts payable 265,936 Accrued liabilities 796,473 Income taxes payable 182,782 Total current liabilities 1,463,185 Long-term debt 525,000 Other 282,395 Total non-current liabilities 807,395 Stockholders' Equity Common stock, $1.00 par value 441,369 Additional paid-in capital 1,589,281 Treasury stock (935,711) Retained earnings 1,006,794 Total stockholders' equity 2,101,733 Total Liabilities and Stockholders' Equity $4,372,313 $ 28,995 189,130 349,159 880,038 279,849 1,727,171 400,000 243,509 643,509 441,369 1,594,332 (473,332) 823,443 2,385,812 $4,756,492 e. Assess Koester's leverage. f. What data do you find that supports the credit agencies' decision to lower Koester's credit rating