Steele Inc. Consolidated Income Statements 2018 2017 $6,149,218 $6,944,296 (4,953,556) $1,990,740 (1,202,042) (4,355,675) $1,793,543 (1,080,843) 0 0 (in thousands except per share amounts) 2019 Net sales $7,245,088 Cost of goods sold (5,286,253) Gross margin $1,958,835 General and administrative expenses (1,259,896) Special and nonrecurring items 2,617 Operating income $701,556 Interest expense (63,685) Other income 7,308 Gain on sale of Investments 0 Income before income taxes $645,179 Provision for income taxes (254,000) Net Income $391,179 $788,698 $712,700 (63,927) (62,398) 10,080 9,117 11,529 0 $745,497 $660,302 (290,000) (257,000) $403,302 $455,497 Steele Inc. Consolidated Balance Sheets (in thousands) ASSETS Dec. 31, 2019 Dec. 31, 2018 $320,558 $41,235 1,056,911 733,700 Current assets Cash and equivalents Accounts receivable Inventories Other Total current assets Property and equipment, net Other assets 837,377 803,707 101,811 109,456 $2,220,625 1,666,588 $1,784,130 1,813,948 247,892 248,372 $4,135,105 $3,846,450 Total assets $250,363 $309,092 274,220 347,892 15,700 0 LIABILITIES AND STOCKHOLDERS' EQUITY Current liabilities: Accounts payable Accrued expenses Other current liabilities Income taxes Total current liabilities Long-term debt Deferred Income taxes Other long-term liabilities 93,489 137,466 $707,444 $720,778 541,639 650,000 275,101 274,844 61,267 41,572 Check My Work 1,693,812 1,578,833 Total liabilities $100,000 $100,000 Stockholders' equity Preferred stock Common stock Additional paid-in capital-common stock Retained earnings 89,727 89,727 128,906 127,776 2,397,112 $2,715,745 2,136,794 $2,454,297 (186,680) $2,267,617 (274,452) Less: Treasury stock, at cost Total stockholders' equity Total liabilities and stockholders' equity $2,441,293 $4,135,105 $3,846,450 Required: 1. Compute the five debt management ratios for 2018 and 2019. Round your answers to two decimal places. 2019 2018 27.04 X Times interest earned Debt to equity ratio Debt to total assets ratio Long-term debt to equity ratio Long-term debt to total assets ratio 0.24 X 0.22 X Check My Work