(Analyzing common-size financial statements) Use the common-size financial statements found here: to respond to your boss' request that you write up your assessment of the firm's financial condition. Specifically, write up a brief narrative that responds to the following questions: a. How much cash does Patterson have on hand relative to its total assets? b. What proportion of Patterson's assets has the firm financed using short-term debt? Long-term debt? c. What percent of Patterson's revenues does the firm have left over after paying all of its expenses (including taxes)? d. Describe the relative Importance of Patterson's major expense categories, including cost of goods sold, operating expenses, and interest expenses a. How much cash does Patterson have on hand relative to its total assets? The cash Patterson has on hand relative to its total assets is %. (Round to one decimal place.) b. What proportion of Patterson's assets has the firm financed using short-term debt? Long-term debt? The proportion of Patterson's assets that has been financed using short-term debt is The proportion of Patterson's assets that has been financed using long-term debt is % (Round to one decimal place) % (Round to one decimal place) c. What percent of Patterson's revenues does the firm have left over after paying all of its expenses (including taxes)? The percent of Patterson's revenues that remained after paying all of its expenses is % (Round to one decimal place.) d. Describe the relative importance of Patterson's major expense categories, including cost of goods sold, operating expenses, and interest expenses The cost of goods sold represents % of Patterson's sales. (Round to one decimal place) The operating expenses represent The interest expense represents % of Patterson's sales. (Round to one decimal place.) % of Patterson's sales. (Round to one decimal place) Data table Common-Size Balance Sheet 2016 Cash and marketable securities $ 510 1.5 % Accounts receivable 6,050 18.3 Inventory 9,480 28.7 Total current assets 16,040 48.6 % Net property, plant, and equipment 16,990 51.4 33,030 100.0% Total assets Accounts payable 7,170 21.7 % Short-term notes 6,850 20.7 Total current liabilities 14,020 42.4 % Long-term liabilities 6,990 21.2 Total liabilities Total common shareholders' equity 21,010 63.6 % 12,020 36.4 33,030 Total liabilities and shareholders' equity 100.0 % Common-Size Income Statement Revenues Cost of goods sold Gross profit Print Done 2016 30,010 100.0% (20,030) 66.7 9.980 33.3% - X - Data table Total assets Accounts payable Short-term notes Total current liabilities Long-term liabilities Total liabilities Total common shareholders' equity Total liabilities and shareholders' equity Common-Size Income Statement Revenues ST 33,030 100.0 % 7,170 21.7 % 6,850 20.7 14,020 42.4 % 6,990 21.2 21,010 63.6% 12,020 36.4 33,030 100.0 % 2016 30,010 100.0 % Cost of goods sold (20,030) 66.7 Gross profit $ 9,980 33.3% Operating expenses (7,950) 26.5 Net operating income 2,030 6.8% Interest expense Earnings before taxes Income taxes Net income (910) 3.0 1,120 3.7% (407) 1.4 713 2.4% Print Done