Asset Efficiency Ratios Financial statements for Steele Inc. follow. 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 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 of investments 0 9,117 0 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 Steele Inc. Consolidated Balance Sheets (in thousands) ASSETS Dec. 31, 2023 Dec. 31, 2022 Current assets: Cash and equivalents $320,558 $41,235 Accounts receivable 1,056,911 837,377 Inventories 733,700 803,707 Other 109,456 101,811 Total current assets $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 LIABILITIES AND STOCKHOLDERS’ EQUITY Current liabilities: Accounts payable $250,363 $309,092 Accrued expenses 347,892 274,220 Other current liabilities 15,700 0 Income taxes 93,489 137,466 Total current liabilities $707,444 $720,778 Long-term debt 650,000 541,639 Deferred income taxes 275,101 274,844 Other long-term liabilities 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-in capital—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 and stockholders’ equity $4,135,105 $3,846,450 Use the information provided above and below to respond to the following requirements. Statement Item January 1, 2022 (in thousands) Accounts receivable $752,945 Inventories 698,604 Total assets 3,485,233 Required: 1. Compute the three asset efficiency ratios for 2022 and 2023. Round your answers to two decimal places. 2023 2022 Accounts receivable turnover ratio fill in the blank 1 fill in the blank 2 Inventory turnover ratio fill in the blank 3 fill in the blank 4 Asset turnover ratio fill in the blank 5 fill in the blank 6 2. Indicate the length of Steele's operating cycle in days for the years ended December 31, 2023, and December 31, 2022. Assume 365 days in a year. Round intermediate calculations and final answers to two decimal places. 2023 fill in the blank 7 days 2022 fill in the blank 8 days

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Chapter1: Financial Statements And Business Decisions
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Asset Efficiency Ratios

Financial statements for Steele Inc. follow.

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   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 of investments 0   9,117   0  
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  

 

Steele Inc.
Consolidated Balance Sheets
(in thousands)
ASSETS Dec. 31, 2023 Dec. 31, 2022
Current assets:
Cash and equivalents $320,558   $41,235  
Accounts receivable 1,056,911   837,377  
Inventories 733,700   803,707  
Other 109,456   101,811  
Total current assets $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  
LIABILITIES AND STOCKHOLDERS’ EQUITY
Current liabilities:
Accounts payable $250,363   $309,092  
Accrued expenses 347,892   274,220  
Other current liabilities 15,700   0  
Income taxes 93,489   137,466  
Total current liabilities $707,444   $720,778  
Long-term debt 650,000   541,639  
Deferred income taxes 275,101   274,844  
Other long-term liabilities 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-in capital—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 and stockholders’ equity $4,135,105   $3,846,450  

 

Use the information provided above and below to respond to the following requirements.

Statement Item January 1, 2022 (in thousands)
Accounts receivable $752,945  
Inventories 698,604  
Total assets 3,485,233  

 

Required:

1.  Compute the three asset efficiency ratios for 2022 and 2023. Round your answers to two decimal places.

  2023 2022
Accounts receivable turnover ratio fill in the blank 1 fill in the blank 2
Inventory turnover ratio fill in the blank 3 fill in the blank 4
Asset turnover ratio fill in the blank 5 fill in the blank 6

2.  Indicate the length of Steele's operating cycle in days for the years ended December 31, 2023, and December 31, 2022. Assume 365 days in a year. Round intermediate calculations and final answers to two decimal places.

2023 fill in the blank 7 days
2022 fill in the blank 8 days
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