Question
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
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 |
Required:
1. Prepare a common size income statement for Steele to be used in vertical analysis. Enter your answers in percentage terms, rounded to two decimal places, and do not include the "%" sign with your answer. For example, "100.00" or "28.72". If an amount is zero, enter "0". For those boxes in which underlying dollar amount is shown as negative, use a minus sign. You do not need to include the actual dollar amounts shown above.
Steele Inc. | |||
Consolidated Income Statements | |||
2019 | 2018 | 2017 | |
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 | % | % | % |
Feedback
Prepare a common size balance sheet for Steele to be used in vertical analysis. Enter your answers in percentage terms, rounded to two decimal places, and do not include the "%" sign with your answer. For example, "100.00" or "28.72". If an amount is zero, enter "0". You do not need to include the actual dollar amounts shown above.
Steele Inc. | ||
Component Percentage Balance Sheets | ||
Dec. 31, 2019 | Dec. 31, 2018 | |
Current assets: | ||
Cash and equivalents | % | % |
Accounts receivable | % | % |
Inventories | % | % |
Other | % | % |
Total current assets | % | % |
Property and equipment, net | % | % |
Other assets | % | % |
Total assets | % | % |
Current liabilities: | ||
Accounts payable | % | % |
Accrued expenses | % | % |
Other current liabilities | % | % |
Income taxes | % | % |
Total current liabilities | % | % |
Long-term debt | % | % |
Deferred income taxes | % | % |
Other long-term liabilities | % | % |
Total liabilities | % | % |
Stockholders' equity: | ||
Preferred stock | % | % |
Common stock | % | % |
Additional paid-in capital - common stock | % | % |
Retained earnings | % | % |
% | % | |
Less: Treasury stock, at cost | % | % |
Total stockholders' equity | % | % |
Total liabilities and stockholders' equity | % | % |
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started