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(Preparing common-size financial statements) As the newest hire to the financial analysis group at Patterson Printing Company, you have been asked to perform a basis

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(Preparing common-size financial statements) As the newest hire to the financial analysis group at Patterson Printing Company, you have been asked to perform a basis financial analysis of the company's most recent financial statements. The 2016 balance sheet and income statement for the Patterson are shown here: a. After discussing your training asignment with a fellow analyst who was hired last year, you learn that the first step in your completing the assignment is to prepare a common-size balance sheet for Patterson. b. The second step is to prepare a common-size income statement for the firm. GETZ Cash and marketable securities $500 6,000 Accounts receivable Inventory 9,500 Total current assets $16,000 Net property, plant, and equipment 17,000 Total assets $33,000 Accounts payable $7,200 Short-term debt 6,800 Total current liabilities $14,000 Long-term liabilities 7,000 Total liabilities $21,000 Total common stockholders' equity 12,000 Total liabilities and stockholders' equity $33,000 (Click on the icon in order to copy its contents into a spreadsheet.) Patterson Printing Company Income Statement for the Year Ended December 31, 2016 Revenues $30,000 Cost of goods sold (20,000) Gross profit $10,000 Operating expenses (8,000) Net operating income $2,000 (900) Interest expense Earnings before taxes $1,100 Income taxes (400) Net income $700 (Click on the icon in order to copy its contents into a spreadshoot)

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