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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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