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

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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.

Common-Size Balance Sheet 2016 Cash and marketable securities $ 510 1.5 % Accounts receivable 5,970 18.1 Inventory 9,450 28.7 Total current assets $ 15,930 48.4 % Net property, plant, and equipment 17,000 51.6 Total assets $ 32,930 100.0 % Accounts payable $ 7,160 21.7 % Short-term notes 6,820 20.7 Total current liabilities $ 13,980 42.5 % Long-term liabilities 7,040 21.4 Total liabilities $ 21,020 63.8 % Total common shareholders equity 11,910 36.2 Total liabilities and shareholders equity $ 32,930 100.0 % Common-Size Income Statement 2016 Revenues $ 30,010 100.0 % Cost of goods sold (20,010) 66.7 Gross profit $ 10,000 33.3 % Operating expenses (7,970) 26.6 Net operating income $ 2,030 6.8 % Interest expense (870) 2.9 Earnings before taxes $ 1,160 3.9 % Income taxes (422) 1.4 Net income $ 738 2.5 %