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

Required:
1. Compute the five profitability ratios (in percentage terms, rounded to two decimal places) for 2018 and 2019.
2. CONCEPTUAL CONNECTION Explain what these ratios suggest about Steele’s profitability. Indicate what other information you would like to know to further assess Steele’s profitability.

Refer to exercise data 12-76,

Steele Inc.

Consolidated Income Statements

(In thousands except per share amounts)

Steele Inc.
Consolidated Balance Sheets
(In thousands)

Transcribed Image Text:

January 1, 2018 (in thousands) Statement Item $3,485,233 2,083,122 Total assets Total stockholders' equity 2019 2018 2017 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 $ 6,149,218 (4,355,675) $ 1,793,543 (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 Gain on sale of investments $ 788,698 (62,398) 10,080 9,117 $ 745,497 (290,000) $ 455,497 $ 712,700 (63,927) 11,529 $ 645,179 (254,000) $ 391,179 $ 660,302 (257,000) 403,302 Income before income taxes Provision for income taxes Net income