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Koester, Inc., states in its 2020 10-K filing with the SEC, In October 2020, two major credit rating agencies changed Koester's long- term credit rating

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Koester, Inc., states in its 2020 10-K filing with the SEC, "In October 2020, two major credit rating agencies changed Koester's long- term credit rating outlook to negative and one of the credit rating agencies reduced Koester's short-term credit rating." Koester's financial statements (in $000) follow. Koester, Inc. Comparative Income Statement For the Year Ended December 31 2020 2019 2018 $5,179,016 $5,102,786 Sales revenue Cost of goods sold $4,960,100 2,530,617 2,806,148 2,692,061 Gross pront 2,372,868 2,410,725 2.429.483 1,708,339 1,679,908 1,643,773 664.522 730,817 785,710 Operating expenses Operating income Interest expense, net Other non-operating (income), net Income before income tax 42,279 58,081 61,611 (29,799) (23,518) (16,755) 652,049 696,254 740,854 203,222 Income tax expense 235,030 123,531 Net income $417,019 $572,723 $537632 Koester, Inc. Comparative Balance Sheet As of December 31 Assets 2020 2019 Cash $997,734 $1,156,835 Accounts receivable (net) 760,643 759,033 Inventory 376,897 418,633 Prepaid expenses and other current assets 277,226 302,649 Total current assets 2,412,500 2,637,150 Property, plant, & equipment (net) 547,104 586,526 Other assets 1,412,709 1,532,816 Total Assets $4,372,313 $4,756,492 $117.994 $28,995 Liabilities and Stockholders' Equity Short-term borrowings Current portion of long-term debt Accounts payable 100,000 189,130 265,936 349,159 Accrued expenses 796,473 880,038 Income taxes payable 182,782 279,849 Total current liabilities 1,463,185 1,727,171 Long-term debt 525,000 400,000 Other 282,395 243,509 Total noncurrent liabilities 807,395 643.509 Stockholders' Equity Common stock $1.00 par value 441369 441,369 Additional pald.in capital 1.589 281 1,594,332 Treasury stock 1935,711) (473,349) Retained earnings 1006,794 823460 Total stockholders equity 2,101733 2385,812 Total Liabilities and Stockholders' Equity $4372 313 $4,756,492 201 ncome Statement 2020 2019 %6 Cost of goods sold 96 Sales revenue % %6 100 % Gross proft 96 %6 Operating expenses 96 Operating income 96 Other non-operating income).net LOODULE % Interest expense, net 96 Income before taxes 95 ANN income tax expense % Netincome 2020 2019 Assets CM Account Inventor Prepaid pe Tot current Proberty continet Other 100 JOULE 10001 POLON Fotalanes Llabilities & Stockholders' Equity Current portion of long-term det Accred cases Income taxes payable Short-term borrow Accounts payable Total current Other Common S 5100 par value DOO Total noncura Stockholders' Equity Loret det LLOOOOO Additional pad-in capital Retained earning Treasury Stock Total stockholders wouity Totaabistockholders equity

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