Refer to Steele's financial statements in Exercise 12-76 and the information below.

Exercise data 12-76,

Steele Inc.

Consolidated Income Statements

(In thousands except per share amounts)

Steele Inc.
Consolidated Balance Sheets
(In thousands)

Required:

1. Perform a Dupont analysis (in percentage terms, rounded to two decimal places) for 2018 and 2019.

2. Explain what you learn about Steele’s trends from 2018 to 2019 by comparing its performance to the industry averages.

Transcribed Image Text:

2019 2018 2017 $ 6,149,218 (4,355,675) $ 1,793,543 Net sales Cost of goods sold Gross margin General and administrative expenses Special and nonrecurring items Operating income Interest expense $7,245,088 (5,286,253) $ 1,958,835 $6,944,296 (4,953,556) $ 1,990,740 (1,202,042) (1,080,843) (1,259,896) 2,617 $ 701,556 (63,685) 7,308 $ 788,698 (62,398) 10,080 9,117 $ 745,497 (290,000) $ 455,497 $ 712,700 (63,927) 11,529 Other income 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 Inventories Other Total current assets Property and equipment, net Other assets Total assets 733,700 109,456 $2,220,625 1,666,588 247,892 101,811 $1,784,130 1,813,948 248,372 $4,135,105 $3,846,450