P4-2 (similar to) Question Help to respond to your boss' request that you write up your assessment of the firm's (Analyzing common-size financial statements) Use the common-size financial statements found here: 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.) Common-Size Balance Sheet 2016 Cash and marketable securities 530 1.6 % Accounts receivable 5,960 18.1 9,510 28.8 Inventory Total current assets Net property, plant, and equipment 16,000 48.5 % 16,980 51.5 Total assets $ 32,980 100.0 % Accounts payable $ 7,170 21.7 % Short-term notes 6,840 20.7 Total current liabilities $ $ 14,010 42.5 % Long-term liabilities 7,020 21.3 Total liabilities $ 21,030 63.8 % Total common shareholders' equity 11,950 36.2 Total liabilities and shareholders' equity $ 32,980 100.0 % Common-Size Income Statement 2016 Revenues 29,980 100.0 % (19,970) 66.6 $ 33.4 % 10,010 (8,000) 26.7 Cost of goods sold Gross profit Operating expenses Net operating income Interest expense Earnings before taxes $ 2,010 6.7 % (910) 3.0 $ 1,100 3.7 % Income taxes (400) 1.3 Net income 700 2.3 3%