Preparation of Common Size Statements for Vertical Analysis 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 Required: Question Content Area 1. Prepare a common size income statement for Steele to be used in vertical analysis. Enter your answers in percentage terms, rounded to two decimal places, and do not include the "%" sign with your answer. For example, "100.00" or "28.72". If an amount box does not require an entry, leave it blank. For those boxes in which underlying dollar amount is shown as negative, use a minus sign. You do not need to include the actual dollar amounts shown above. Steele Inc.Consolidated Income Statements 2023 2022 2021 Net sales fill in the blank 2091b203907ffef_1% fill in the blank 2091b203907ffef_2% fill in the blank 2091b203907ffef_3% Cost of goods sold fill in the blank 2091b203907ffef_4% fill in the blank 2091b203907ffef_5% fill in the blank 2091b203907ffef_6% Gross margin fill in the blank 2091b203907ffef_7% fill in the blank 2091b203907ffef_8% fill in the blank 2091b203907ffef_9% General and administrative expenses fill in the blank 2091b203907ffef_10% fill in the blank 2091b203907ffef_11% fill in the blank 2091b203907ffef_12% Special and nonrecurring items fill in the blank 2091b203907ffef_13% fill in the blank 2091b203907ffef_14 fill in the blank 2091b203907ffef_15% Operating income fill in the blank 2091b203907ffef_16% fill in the blank 2091b203907ffef_17% fill in the blank 2091b203907ffef_18% Interest expense fill in the blank 2091b203907ffef_19% fill in the blank 2091b203907ffef_20% fill in the blank 2091b203907ffef_21% Other income fill in the blank 2091b203907ffef_22% fill in the blank 2091b203907ffef_23% fill in the blank 2091b203907ffef_24% Gain on sale of investments fill in the blank 2091b203907ffef_25% fill in the blank 2091b203907ffef_26% fill in the blank 2091b203907ffef_27 Income before income taxes fill in the blank 2091b203907ffef_28% fill in the blank 2091b203907ffef_29% fill in the blank 2091b203907ffef_30% Provision for income taxes fill in the blank 2091b203907ffef_31% fill in the blank 2091b203907ffef_32% fill in the blank 2091b203907ffef_33% Net income fill in the blank 2091b203907ffef_34% fill in the blank 2091b203907ffef_35% fill in the blank 2091b203907ffef_36% Question Content Area Prepare a common size balance sheet for Steele to be used in vertical analysis. Enter your answers in percentage terms, rounded to two decimal places, and do not include the "%" sign with your answer. For example, "100.00" or "28.72". If an amount is zero, enter "0". You do not need to include the actual dollar amounts shown above.

Preparation of Common Size Statements for Vertical Analysis 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 Required: Question Content Area 1. Prepare a common size income statement for Steele to be used in vertical analysis. Enter your answers in percentage terms, rounded to two decimal places, and do not include the "%" sign with your answer. For example, "100.00" or "28.72". If an amount box does not require an entry, leave it blank. For those boxes in which underlying dollar amount is shown as negative, use a minus sign. You do not need to include the actual dollar amounts shown above. Steele Inc.Consolidated Income Statements 2023 2022 2021 Net sales fill in the blank 2091b203907ffef_1% fill in the blank 2091b203907ffef_2% fill in the blank 2091b203907ffef_3% Cost of goods sold fill in the blank 2091b203907ffef_4% fill in the blank 2091b203907ffef_5% fill in the blank 2091b203907ffef_6% Gross margin fill in the blank 2091b203907ffef_7% fill in the blank 2091b203907ffef_8% fill in the blank 2091b203907ffef_9% General and administrative expenses fill in the blank 2091b203907ffef_10% fill in the blank 2091b203907ffef_11% fill in the blank 2091b203907ffef_12% Special and nonrecurring items fill in the blank 2091b203907ffef_13% fill in the blank 2091b203907ffef_14 fill in the blank 2091b203907ffef_15% Operating income fill in the blank 2091b203907ffef_16% fill in the blank 2091b203907ffef_17% fill in the blank 2091b203907ffef_18% Interest expense fill in the blank 2091b203907ffef_19% fill in the blank 2091b203907ffef_20% fill in the blank 2091b203907ffef_21% Other income fill in the blank 2091b203907ffef_22% fill in the blank 2091b203907ffef_23% fill in the blank 2091b203907ffef_24% Gain on sale of investments fill in the blank 2091b203907ffef_25% fill in the blank 2091b203907ffef_26% fill in the blank 2091b203907ffef_27 Income before income taxes fill in the blank 2091b203907ffef_28% fill in the blank 2091b203907ffef_29% fill in the blank 2091b203907ffef_30% Provision for income taxes fill in the blank 2091b203907ffef_31% fill in the blank 2091b203907ffef_32% fill in the blank 2091b203907ffef_33% Net income fill in the blank 2091b203907ffef_34% fill in the blank 2091b203907ffef_35% fill in the blank 2091b203907ffef_36% Question Content Area Prepare a common size balance sheet for Steele to be used in vertical analysis. Enter your answers in percentage terms, rounded to two decimal places, and do not include the "%" sign with your answer. For example, "100.00" or "28.72". If an amount is zero, enter "0". You do not need to include the actual dollar amounts shown above.

Survey of Accounting (Accounting I)

8th Edition

ISBN:9781305961883

Author:Carl Warren

Publisher:Carl Warren

Chapter9: Metric-analysis Of Financial Statements

Section: Chapter Questions

Problem 9.1E

See similar textbooks

Question Content Area

1. Prepare a common size income statement for Steele to be used in vertical analysis. Enter your answers in percentage terms, rounded to two decimal places, and do not include the "%" sign with your answer. For example, "100.00" or "28.72". If an amount box does not require an entry, leave it blank. For those boxes in which underlying dollar amount is shown as negative, use a minus sign. You do not need to include the actual dollar amounts shown above.

Steele Inc.Consolidated Income Statements

	2023	2022	2021
Net sales	fill in the blank 2091b203907ffef_1%	fill in the blank 2091b203907ffef_2%	fill in the blank 2091b203907ffef_3%
Cost of goods sold	fill in the blank 2091b203907ffef_4%	fill in the blank 2091b203907ffef_5%	fill in the blank 2091b203907ffef_6%
Gross margin	fill in the blank 2091b203907ffef_7%	fill in the blank 2091b203907ffef_8%	fill in the blank 2091b203907ffef_9%
General and administrative expenses	fill in the blank 2091b203907ffef_10%	fill in the blank 2091b203907ffef_11%	fill in the blank 2091b203907ffef_12%
Special and nonrecurring items	fill in the blank 2091b203907ffef_13%	fill in the blank 2091b203907ffef_14	fill in the blank 2091b203907ffef_15%
Operating income	fill in the blank 2091b203907ffef_16%	fill in the blank 2091b203907ffef_17%	fill in the blank 2091b203907ffef_18%
Interest expense	fill in the blank 2091b203907ffef_19%	fill in the blank 2091b203907ffef_20%	fill in the blank 2091b203907ffef_21%
Other income	fill in the blank 2091b203907ffef_22%	fill in the blank 2091b203907ffef_23%	fill in the blank 2091b203907ffef_24%
Gain on sale of investments	fill in the blank 2091b203907ffef_25%	fill in the blank 2091b203907ffef_26%	fill in the blank 2091b203907ffef_27
Income before income taxes	fill in the blank 2091b203907ffef_28%	fill in the blank 2091b203907ffef_29%	fill in the blank 2091b203907ffef_30%
Provision for income taxes	fill in the blank 2091b203907ffef_31%	fill in the blank 2091b203907ffef_32%	fill in the blank 2091b203907ffef_33%
Net income	fill in the blank 2091b203907ffef_34%	fill in the blank 2091b203907ffef_35%	fill in the blank 2091b203907ffef_36%

Question Content Area

Prepare a common size balance sheet for Steele to be used in vertical analysis. Enter your answers in percentage terms, rounded to two decimal places, and do not include the "%" sign with your answer. For example, "100.00" or "28.72". If an amount is zero, enter "0". You do not need to include the actual dollar amounts shown above.

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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