Steele Inc. Consolidated Income Statements (in thousands except per share amounts) 2023 2022 2021 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 o Operating income $701,556 $788,698 $712,700 Interest expense Other income (63,685) (62.398) (63.927) 7,308 10,080 11,529 Gain on sale of investments 0 9,117 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 ASSETS Current assets: Cash and equivalents Accounts receivable Inventories Other Total current assets Property and equipment, net Other assets Total assets Steele Inc. Consolidated Balance Sheets (in thousands) LIABILITIES AND STOCKHOLDERS' EQUITY Current liabilities: Accounts payable Accrued expenses Other current liabilities Income taxes Total current liabilities Check My Work more Check My Work uses remaining Dec. 31, 2023 Dec. 31, 2022 $320,558 $41.235 1.056,911 837,377 733,700 803,707 109,456 101,811 $2,220,625 $1,784,130 1,666,588 1,813,948 215,342 $4,102,555 248,372 $3,846.450 $250,363 $309,092 347.892 274,220 15,700 93.489 137,466 $707.444 $720.778 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 Required: 650,000 541,639 275,101 274,844 61,267 41,572 $1,693,812 $1,578,833 $100,000 89,727 $100,000 89,727 127,776 128,906 2.397,112 2,136,794 $2,715,745 $2,454,297 (307,002) (186,680) $2,408,743 $2,267,617 $4,102,555 $3,846,450 Using Steele's financial statements as shown above, respond to the following requirements. 1. Compute the five debt management ratios for 2022 and 2023. Round your answers to two decimal places. Times interest earned 2022 2023 15.6 X 19.84 X Debt to equity ratio Debt to total assets ratio Long-term debt to equity ratio Long-term debt to total assets ratio 2. Conceptual Connection: Indicate whether the ratios have changed significantly from 2022 to 2023. Do the ratios suggest that Steele is more or less risky for long-term creditors at December 31, 2023, than at December 31, 2022