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 FRIL 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 Total stockholders' equity $2,441,293 $2,267,617 Total liabilities and stockholders' equity $4,135,105 $3,846,450 Use the information above and below to respond to the following requirements. January 1, 2018 (in millions) Statement Item Total assets $3,485,233 Total stockholders' equity 2,083,122 Year Ended December 31, Industry Averages 2019 2018 12.54% Return on equity 5.31% Profit margin 4.00 6.21 1.96 0.83 Asset turnover 1.03 1.60 Leverage Required: Perform a Dupont analysis for 2018 and 2019. Round intermediate calculations and your answers to two decimal places Return on Equity 2019 2018 Previous