Financial statements for Steele Inc. follow.

Steele Inc.

Consolidated Income Statements

(In thousands except per share amounts)

Steele Inc.
Consolidated Balance Sheets
(In thousands)

Required:
1. Prepare common size income statements and balance sheets for Steele to be used in vertical analysis (in percentage terms, rounded to two decimal places). You do not need to include the actual dollar amounts shown above.
2. Indicate whether gross margin grew as much as sales between 2017 and 2018 and between 2018 and 2019, and, if so, why it grew.
3. Indicate whether the relative proportion of Steele's assets changed between 2018 and 2019, and, if so, explain the change.
4. Indicate whether the relative proportion of Steele's liabilities and equity changed between 2018 and 2019, and, if so, explain the change.
5. Explain how Steele appears to have financed the 7.5% increase in assets that occurred between 2018 and 2019.

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2019 2018 2017 $ 6,149,218 (4,355,675) $ 1,793,543 Net sales Cost of goods sold Gross margin General and administrative $7,245,088 (5,286,253) $ 1,958,835 $6,944,296 (4,953,556) $1,990,740 (1,259,896) 2,617 $ 701,556 (63,685) 7,308 (1,202,042) (1,080,843) expenses Special and nonrecurring items Operating income Interest expense Other income $ 788,698 (62,398) 10,080 9,117 $ 745,497 (290,000) $ 455,497 $ 712,700 (63,927) 11,529 Gain on sale of investments $ 645,179 (254,000) $ 391,179 $ 660,302 (257,000) $ 403,302 Income before income taxes Provision for income taxes Net income ASSETS Dec. 31, 2019 Dec. 31, 2018 Current assets: Cash and equivalents Accounts receivable $ 320,558 1,056,911 $ 41,235 837,377 803,707 101,811 Inventories Other Total current assets Property and equipment, net Other assets Total assets 733,700 109,456 $2,220,625 1,666,588 247,892 $1,784,130 1,813,948 248,372 $4,135,105 $3,846,450