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Exercise 12-80 Asset Efficiency Ratios Financial statements for Steele Inc. follow. Steele Inc. Consolidated Income Statements (in thousands except per share amounts) 2019 2018 2017
Exercise 12-80 Asset Efficiency 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 | $1,990,740 | $1,793,543 | ||||
General and administrative expenses | (1,259,896) | (1,202,042) | (1,080,843) | ||||
Special and nonrecurring items | 2,617 | 0 | 0 | ||||
Operating income | $701,556 | $788,698 | $712,700 | ||||
Interest expense | (63,685) | (62,398) | (63,927) | ||||
Other income | 7,308 | 10,080 | 11,529 | ||||
Gain on sale of investments | 0 | 9,117 | 0 | ||||
Income before income taxes | $645,179 | $745,497 | $660,302 | ||||
Provision for income taxes | (254,000) | (290,000) | (257,000) | ||||
Net income | $391,179 | $455,497 | $403,302 |
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 | |||
Other assets | 247,892 | 248,372 | |||
Total assets | $4,135,105 | $3,846,450 | |||
LIABILITIES AND STOCKHOLDERS EQUITY | |||||
Current liabilities: | |||||
Accounts payable | $250,363 | $309,092 | |||
Accrued expenses | 347,892 | 274,220 | |||
Other current liabilities | 15,700 | 0 | |||
Income taxes | 93,489 | 137,466 | |||
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 | 1,693,812 | 1,578,833 | |||
Stockholders equity: | |||||
Preferred stock | $100,000 | $100,000 | |||
Common stock | 89,727 | 89,727 | |||
Additional paid-in capitalcommon stock | 128,906 | 127,776 | |||
Retained earnings | 2,397,112 | 2,136,794 | |||
$2,715,745 | $2,454,297 | ||||
Less: Treasury stock, at cost | (274,452) | (186,680) | |||
Total stockholders equity | $2,441,293 | $2,267,617 | |||
Total liabilities and stockholders equity | $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:
2. Indicate the length of Steele's operating cycle in days for the years ended December 31, 2019, and December 31, 2018. Round intermediate calculations and final answers to two decimal places.
2019 | |
2018 |
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