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

Common-Size Balance Sheet		2016
Cash and marketable securities	$	540	1.6	%
Accounts receivable		5,980	18.1
Inventory		9,550	28.9
Total current assets	$	16,070	48.7	%
Net property, plant, and equipment		16,950	51.3
Total assets	$	33,020	100.0	%
Accounts payable	$	7,180	21.7	%
Short-term notes		6,830	20.7
Total current liabilities	$	14,010	42.4	%
Long-term liabilities		6,980	21.1
Total liabilities	$	20,990	63.6	%
Total common shareholders equity		12,030	36.4
Total liabilities and shareholders equity	$	33,020	100.0	%

Common-Size Income Statement		2016
Revenues	$	30,030	100.0	%
Cost of goods sold		(20,040)	66.7
Gross profit	$	9,990	33.3	%
Operating expenses		(7,950)	26.5
Net operating income	$	2,040	6.8	%
Interest expense		(860)	2.9
Earnings before taxes	$	1,180	3.9	%
Income taxes		(429)	1.4
Net income	$	751	2.5	%

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.

Question content area bottom

Part 1

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

enter your response here %.