(Analyzing common-size financial statements) Use the common-size financial statements found here:

Common-Size Balance Sheet		2016
Cash and marketable securities	$	500	1.5	%
Accounts receivable		6,000	18.2
Inventory		9,450	28.7
Total current assets	$	15,950	48.4	%
Net property, plant, and equipment		16,980	51.6
Total assets	$	32,930	100.0	%
Accounts payable	$	7,240	22.0	%
Short-term notes		6,750	20.5
Total current liabilities	$	13,990	42.5	%
Long-term liabilities		6,990	21.2
Total liabilities	$	20,980	63.7	%
Total common shareholders equity		11,950	36.3
Total liabilities and shareholders equity	$	32,930	100.0	%

Common-Size Income Statement		2016
Revenues	$	29,980	100.0	%
Cost of goods sold		(19,980)	66.6
Gross profit	$	10,000	33.4	%
Operating expenses		(8,010)	26.7
Net operating income	$	1,990	6.6	%
Interest expense		(900)	3.0
Earnings before taxes	$	1,090	3.6	%
Income taxes		(396)	1.3
Net income	$	694	2.3	%

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

1.51.5%.

(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

42.542.5%.

(Round to one decimal place.)The proportion of Patterson's assets that has been financed using long-term debt is

21.221.2%.

(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

66.666.6%.

(Round to one decimal place.)

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

1.51.5%.

(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

42.542.5%.

(Round to one decimal place.)The proportion of Patterson's assets that has been financed using long-term debt is

21.221.2%.

(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.)

Need help with C & D