Financial statements for Steele Inc. follow.SteeleInc.ConsolidatedIncome Statements(inthousands except per share...Financial statements for Steele Inc....

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Accounting

Financial statements for Steele Inc. follow.
SteeleInc.
ConsolidatedIncome Statements
(inthousands 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 andadministrative expenses (1,259,896) (1,202,042) (1,080,843)
Special andnonrecurring 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 ofinvestments 0 9,117 0
Income before incometaxes $645,179 $745,497 $660,302
Provision for incometaxes (254,000) (290,000) (257,000)
Net income $391,179 $455,497 $403,302
SteeleInc.
ConsolidatedBalance Sheets
(inthousands)
ASSETS Dec. 31,2019 Dec. 31,2018
Current assets:
Cash andequivalents $320,558 $41,235
Accountsreceivable 1,056,911 837,377
Inventories 733,700 803,707
Other 109,456 101,811
Total currentassets $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
LIABILITIESAND STOCKHOLDERS’ EQUITY
Currentliabilities:
Accounts payable $250,363 $309,092
Accrued expenses 347,892 274,220
Other currentliabilities 15,700 0
Income taxes 93,489 137,466
Total currentliabilities $707,444 $720,778
Long-term debt 650,000 541,639
Deferred incometaxes 275,101 274,844
Other long-termliabilities 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-incapital—common 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 andstockholders’ equity $4,135,105 $3,846,450
Required:
1. Prepare a common size income statement forSteele to be used in vertical analysis. Enter your answers inpercentage terms, rounded to two decimal places, and do not includethe "%" sign with your answer. For example, "100.00" or "28.72". Ifan amount is zero, enter "0". For those boxes in which underlyingdollar amount is shown as negative, use a minus sign. You do notneed 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 invertical analysis. Enter your answers in percentage terms, roundedto two decimal places, and do not include the "%" sign with youranswer. For example, "100.00" or "28.72". If an amount is zero,enter "0". You do not need to include the actual dollar amountsshown 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 % %

Answer & Explanation Solved by verified expert

3.7 Ratings (499 Votes)

Under Vertical analysis all numbers are expressed as a of Net Sales in Income Statement and a of total assets in Balance Sheet of the corresponding year Steele Inc Consolidated Income Statements 2019 2018 2017 Net sales 10000 10000 10000 Cost of goods sold 7296 7133 7083 Gross margin 2704 See Answer

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In: AccountingFinancial statements for Steele Inc. follow.SteeleInc.ConsolidatedIncome Statements(inthousands except per share...Financial statements for Steele Inc. follow.SteeleInc.ConsolidatedIncome Statements(inthousands except per share amounts)201920182017Net sales$7,245,088$6,944,296$6,149,218Cost of goods sold(5,286,253)(4,953,556)(4,355,675)Gross margin$1,958,835$1,990,740$1,793,543General andadministrative expenses(1,259,896)(1,202,042)(1,080,843)Special andnonrecurring items2,61700Operating income$701,556$788,698$712,700Interest expense(63,685)(62,398)(63,927)Other income7,30810,08011,529Gain on sale ofinvestments09,1170Income before incometaxes$645,179$745,497$660,302Provision for incometaxes(254,000)(290,000)(257,000)Net income$391,179$455,497$403,302SteeleInc.ConsolidatedBalance Sheets(inthousands)ASSETSDec. 31,2019Dec. 31,2018Current assets:Cash andequivalents$320,558$41,235Accountsreceivable1,056,911837,377Inventories733,700803,707Other109,456101,811Total currentassets$2,220,625$1,784,130Property and equipment,net1,666,5881,813,948Other assets247,892248,372Total assets$4,135,105$3,846,450LIABILITIESAND STOCKHOLDERS’ EQUITYCurrentliabilities:Accounts payable$250,363$309,092Accrued expenses347,892274,220Other currentliabilities15,7000Income taxes93,489137,466Total currentliabilities$707,444$720,778Long-term debt650,000541,639Deferred incometaxes275,101274,844Other long-termliabilities61,26741,572Total liabilities1,693,8121,578,833Stockholders’equity:Preferred stock$100,000$100,000Common stock89,72789,727Additional paid-incapital—common stock128,906127,776Retained earnings2,397,1122,136,794$2,715,745$2,454,297Less: Treasury stock,at cost(274,452)(186,680)Total stockholders’equity$2,441,293$2,267,617Total liabilities andstockholders’ equity$4,135,105$3,846,450Required:1. Prepare a common size income statement forSteele to be used in vertical analysis. Enter your answers inpercentage terms, rounded to two decimal places, and do not includethe "%" sign with your answer. For example, "100.00" or "28.72". Ifan amount is zero, enter "0". For those boxes in which underlyingdollar amount is shown as negative, use a minus sign. You do notneed to include the actual dollar amounts shown above.Steele Inc.Consolidated Income Statements201920182017Net 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%%%FeedbackPrepare a common size balance sheet for Steele to be used invertical analysis. Enter your answers in percentage terms, roundedto two decimal places, and do not include the "%" sign with youranswer. For example, "100.00" or "28.72". If an amount is zero,enter "0". You do not need to include the actual dollar amountsshown above.Steele Inc.Component Percentage Balance SheetsDec. 31, 2019Dec. 31, 2018Current 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%%

SteeleInc.
ConsolidatedIncome Statements
(inthousands 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 andadministrative expenses	(1,259,896)	(1,202,042)	(1,080,843)
Special andnonrecurring 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 ofinvestments	0	9,117	0
Income before incometaxes	$645,179	$745,497	$660,302
Provision for incometaxes	(254,000)	(290,000)	(257,000)
Net income	$391,179	$455,497	$403,302

SteeleInc.
ConsolidatedBalance Sheets
(inthousands)
ASSETS	Dec. 31,2019	Dec. 31,2018
Current assets:
Cash andequivalents	$320,558	$41,235
Accountsreceivable	1,056,911	837,377
Inventories	733,700	803,707
Other	109,456	101,811
Total currentassets	$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
LIABILITIESAND STOCKHOLDERS’ EQUITY
Currentliabilities:
Accounts payable	$250,363	$309,092
Accrued expenses	347,892	274,220
Other currentliabilities	15,700	0
Income taxes	93,489	137,466
Total currentliabilities	$707,444	$720,778
Long-term debt	650,000	541,639
Deferred incometaxes	275,101	274,844
Other long-termliabilities	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-incapital—common 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 andstockholders’ equity	$4,135,105	$3,846,450

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	%	%	%

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	%	%