Calculator Print Item Exercise 12-79 Debt Management Ratios Financial statements for Steele Inc. follow. Steele Inc. Consolidated Income Statements (in thousands except per share amounts) 2019 2018 2017 $6,944,296 (4,953,556) $1,990,740 (1,202,042) $6,149,218 (4,355,675) $1,793,543 (1,080,843) Net sales Cost of goods sold Gross margin General and administrative expenses Special and nonrecurring items Operating income Interest expense Other income Gain on sale of investments Income before income taxes Provision for income taxes Net income $7,245,088 (5,286,253) $1,958,835 (1,259,896) 2,617 $701,556 (63,685) 7,308 $788,698 (62,398) 10,080 9,117 $712,700 (63,927) 11,529 $745,497 $660,302 (257,000) $645,179 (254,000) $391,179 (290,000) $455,497 $403,302 Steele Inc. Consolidated Balance Sheets (in thousands) Dec 31, 2019 Dec 31, 2018 ASSETS Current assets: Cash and equivalents $41,235 837,377 Accounts receivable Inventories Other $320,558 1,056,911 733,700 109,456 $2,220,625 1,666,588 247,892 $4,135,105 Total current assets Property and equipment, net 803,707 101,811 $1,784,130 1,813,948 248,372 $3,846,450 Other assets Total assets LIABILITIES AND STOCKHOLDERS' EQUITY Current liabilities: $309,092 274,220 Accounts payable Accrued expenses Other current liabilities $250,363 347,892 15,700 93,489 137.466 $720,778 5707 444 Income taxes Total current liabilities $720,778 Total current liabilities Long-term debt Deferred income taxes Other long-term liabilities $707,144 650,000 275,101 541,639 274,844 41,572 61,267 Total liabilities 1,693,812 1,578,833 Stockholders' equity: Preferred stock Common stock Additional paid-in capital-common stock Retained earnings $100,000 89,727 $100,000 89,727 127,776 2,136,794 128,906 2,397,112 $2.715,745 $2.454,297 (274,452) (186,680) $2,441,293 $2.267,617 Less: Treasury stock, at cost Total stockholders' equity Total liabilities and stockholders' equity $4,135,103 $3,846.450 Required: 1. Compute the five debt management ratios for 2018 and 2019. Round your answers to two decimal places, 2019 2018 Times interest earned Total liabilities and stockholders' equity $4,135,105 $3,846,450 Use the information provided above and below to respond to the following requirements. Year ended December 31, 2019 2018 364,398 $24,000 Average number of common shares outstanding thousands) Preferred dividends (thousands) Dividends per common share Common dividends (thousands) Common stock repurchases Market price per share: 362,202 $24,000 0.35 130.061.00 561.172.30 High 06.30 Required 2019 130,861.00 561,172.30 Common dividends (thousands) Common stock repurchases Market price per share: High 29.10 83.25 6125 Close 78.42 66.36 A January 1, 2018, total stockholders' equity was $2,080,122 and there was no preferred stock. Required 1. Compute the earnings per share, return on common equity, dividend yield ratio, and dividend payout ratio in percentage terms, rounded to two decimal places except for Eps, which should be rounded to nearest cent) for 2018 and 2019, 2019 2018 Earnings per share Return on common equity Dividend yield ratio Dividend payout ratio 2. Conceptual Connection indicate whether there were significant changes in these ratio between the years ended December 31, 2019, and December 31, 2018 All the ratios decreased Determine whether the stockholder ratios suggest that Steele was a better investment at December 31, 2019, or December 31, 2018 December 11 2016 previous Next) 130,861.00 561,172.30 Common dividends (thousands) Common stock repurchases Market price per share: High 29.10 83.25 6125 Close 78.42 66.36 A January 1, 2018, total stockholders' equity was $2,080,122 and there was no preferred stock. Required 1. Compute the earnings per share, return on common equity, dividend yield ratio, and dividend payout ratio in percentage terms, rounded to two decimal places except for Eps, which should be rounded to nearest cent) for 2018 and 2019, 2019 2018 Earnings per share Return on common equity Dividend yield ratio Dividend payout ratio 2. Conceptual Connection indicate whether there were significant changes in these ratio between the years ended December 31, 2019, and December 31, 2018 All the ratios decreased Determine whether the stockholder ratios suggest that Steele was a better investment at December 31, 2019, or December 31, 2018 December 11 2016 previous Next)