Use the common-size financial statements found here: 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

__% (Round to one decimal place.)

Common-Size Balance Sheet		2016
Cash and marketable securities	$	490	1.5	%
Accounts receivable		5,970	18.1
Inventory		9,480	28.8
Total current assets	$	15,940	48.4	%
Net property, plant, and equipment		16,970	51.6
Total assets	$	32,910	100	%
Accounts payable	$	7,190	21.8	%
Short-term notes		6,790	20.6
Total current liabilities	$	13,980	42.5	%
Long-term liabilities		7,030	21.4
Total liabilities	$	21,010	63.8	%
Total common shareholders equity		11,900	36.2
Total liabilities and shareholders equity	$	32,910	100	%

Common-Size Income Statement 2016

Revenues $ 30,000 100 %

Cost of goods sold -19,960 66.5

Gross profit $ 10,040 33.5 %

Operating expenses -8,050 26.8

Net operating income $ 1,990 6.6 %

Interest expense -890 3

Earnings before taxes $ 1,100 3.7 %

Income taxes -400 1.3

Net income $ 700 2.3 %