Calculator Exercise 12-79 Print Item Debt Management Ratios Financial statements for Steele Inc. follow. Steele Inc. Consolidated Income Statements (in thousands except per share amounts) 2019 2018 2017 Net sales $7,245,088 $6,944,296 $6,149,218 Cost of goods sold (5,286,253) (4,953,556) (4,355,675) Gross margin $1,958,835 $1,793,543 $1,990,740 General and administrative expenses (1,259,896) (1,202,042) (1,080,843) 2,617 0 Special and nonrecurring items $701,556 $788,698 $712,700 Operating income (63,927) (63,685) (62,398) Interest expense 11,529 7,308 10,080 Other income 0 9,117 Gain on sale of investments $660,302 $745,497 $645,179 Income before income taxes (257,000) (290,000) (254,000) Provision for income taxes $403,302 $455,497 $391,179 Net income Steele Inc. Consolidated Balance Sheets (in thousands) ASSETS Dec. 31, 2019 Dec. 31, 2018 Current assets: Cash and equivalents $320,558 $41,235 Accounts receivable 1,056,911 837,377 Inventories 733,700 803,707 Other 109,456 101,811 Total current assets $2,220,625 $1,784,130 Property and equipment, net 1,666,588 1,813,948 247,892 248,372 Other assets $3,846,450 $4,135,105 Total assets LIABILITIES AND STOCKHOLDERS EQUITY Current liabilities: $309,092 $250,363 Accounts payable 274,220 347,892 Accrued expenses 15,700 137,466 Other current liabilities 93,489 $720.778 Income taxes $707 444 Total current liabilities FIRIL Ierl Total current liabilities $707,444 $720,778 Long-term debt 650,000 541,639 Deferred income taxes 275,101 274,844 Other long-term liabilities 61,267 41,572 Total liabilities 1,578,833 1,693,812 Stockholders' equity: $100,000 $100,000 Preferred stock 89,727 89,727 Common stock 127,776 128,906 Additional paid-in capital-common stock 2,136,794 2,397,112 Retained earnings $2,454,297 $2,715,745 (186,680) (274,452) Less: Treasury stock, at cost $2,267,617 $2,441,293 Total stockholders' equity $3,846,450 $4,135.105 Total liabilities and stockholders' equity Required: 1. Compute the five debt management ratios for 2018 and 2019. Round your answers to two decimal places. 2018 2019 Times interest earned neht tnnmult Calculator Total liabilities and stockholders' equity Print tem $4,135,105 $3,846,450 Use the information provided above and below to respond to the following requirements. Statement Item January 1, 2018 (in thousands) Accounts receivable $752,945 Inventories 698,604 Total assets 3,485,233 Required: 1. Compute the three asset efficiency ratios for 2018 and 2019. Round your answers to two decimal places 2019 2018 Accounts receivable turnover ratio Inventory turnover ratio Asset turnover ratio 2. Indicate the length of Steele's operating cycle in days for the years ended December 31, 2019, and December 31, 2018. Round internmediate caloulations and final answers to two dedimal places. days 2019 days 2016
