a. How much cash does Patterson have on hand relative to its total assets? b. What...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
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 Pattersons major expense categories, including cost of goods sold, operating expenses, and interest expenses. a. The cash Patterson has on hand relative to his total ass it is b. The proportion of Pattersons assets that has been financed using short term debt is The proportion of Pattersons assets that has been financed using long-term debt is c. What percent of Patterson's revenues does the firm have left over after paying all of his expenses including taxes? d. Describe the relative importance of Pattersons major expense categories including the cost of goods sold operating expenses in interest expenses. The cost of good sold represents The operating expenses represent The interest expense represents_ _% of Patterson's sales. % of Patterson's sales. % of Patterson's sales. Data Table Common-Size Balance Sheet 2016 Cash and marketable securities 520 16 % Accounts receivable 6.050 18.3 Inventory 9,510 28 8 Total current assets $4 16,080 48.6 % Net property, plant, and equipment 16,980 51.4 Total assets 33,060 100.0 % Accounts payable 7.150 21.6 % Short-term notes 6 750 20 4 Total current liabilities 13,900 42.0 % Long-term liabilities 7.050 21.3 Total liabilities 20.950 63 4 % Total common shareholders equity 12.110 36.6 Total liabilities and shareholders equity 33.060 100.0 % %24 %24 Common-Size Income Statement 2016 Revenues 29,990 100.0 % Cost of goods sold (20,030) 66.8 Gross profit %$4 9,960 33.2 % Operating expenses (7,980) 26.6 Net operating income 1,980 6.6 % Interest expense (920) 3.1 Earnings before taxes 1,060 3.5 % Income taxes (385) 1.3 Net income 675 2.3 % %24 %24 %24 %24 %24 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 Pattersons major expense categories, including cost of goods sold, operating expenses, and interest expenses. a. The cash Patterson has on hand relative to his total ass it is b. The proportion of Pattersons assets that has been financed using short term debt is The proportion of Pattersons assets that has been financed using long-term debt is c. What percent of Patterson's revenues does the firm have left over after paying all of his expenses including taxes? d. Describe the relative importance of Pattersons major expense categories including the cost of goods sold operating expenses in interest expenses. The cost of good sold represents The operating expenses represent The interest expense represents_ _% of Patterson's sales. % of Patterson's sales. % of Patterson's sales. Data Table Common-Size Balance Sheet 2016 Cash and marketable securities 520 16 % Accounts receivable 6.050 18.3 Inventory 9,510 28 8 Total current assets $4 16,080 48.6 % Net property, plant, and equipment 16,980 51.4 Total assets 33,060 100.0 % Accounts payable 7.150 21.6 % Short-term notes 6 750 20 4 Total current liabilities 13,900 42.0 % Long-term liabilities 7.050 21.3 Total liabilities 20.950 63 4 % Total common shareholders equity 12.110 36.6 Total liabilities and shareholders equity 33.060 100.0 % %24 %24 Common-Size Income Statement 2016 Revenues 29,990 100.0 % Cost of goods sold (20,030) 66.8 Gross profit %$4 9,960 33.2 % Operating expenses (7,980) 26.6 Net operating income 1,980 6.6 % Interest expense (920) 3.1 Earnings before taxes 1,060 3.5 % Income taxes (385) 1.3 Net income 675 2.3 % %24 %24 %24 %24 %24
Expert Answer:
Answer rating: 100% (QA)
ACCOUNTS latest Microsoft Excel Product Activation Failed File Home Insert Page Layout Formulas Data ... View the full answer
Related Book For
Basic Finance An Introduction to Financial Institutions Investments and Management
ISBN: 978-1111820633
10th edition
Authors: Herbert B. Mayo
Posted Date:
Students also viewed these accounting questions
-
Using the data in M7-3, calculate to one decimal place the inventory turnover ratio and days to sell for Dillard's. In a recent year, Macy's reported an inventory turnover ratio of 3.2. Which...
-
The comparative financial statements of Tec Solutions Inc. are as follows. The market price of Tec Solutions Inc. common stock was $89.75 on December 31, 20Y8. Instructions: Determine the following...
-
Estimate the intervals of concavity to one decimal place by using a computer algebra system to compute and graph f. x' - 10x + 5 V + 4 (x+ 1)'(x + 5) (r' + 1)(x + 4) 57. f(x) 58. f(x)
-
A Mechanical Design Company produces an innovative design of Battery used for electric cars. The standard design of producing one(1) unit of Battery is provided in the bill of materials BOM which...
-
The table below lists measured amounts of redshift and the distances (billions of light-years) to randomly selected clusters of galaxies (based on data from The Cosmic Perspective by Bennett et ah,...
-
Design a bipolar cascode amplifier with a cascode active load similar to that in Figure P10.89 except the amplifying transistors are to be pnp and the load transistors are to be npn. Bias the circuit...
-
If EPS rises after a deal, does this necessarily imply value creation?
-
Georgette Rheingold owns and operates a fruit smoothie manufacturing operation, Nutri-smoothie. She processes fruit and adds it to yogurt and produces fruit smoothies, the main product. She sells the...
-
Use the box-and-whisker plot to identify the five-number summary. Min=10 Q = Q = 10 11 13 15 Q3 10 12 14 16 18 20 Max=
-
A pulpwood loader as shown in Figure P5-63 is to be designed to lift 2.5 kip. Select a steel and determine a suitable tubular cross section for the main upright member BF that has attachments for the...
-
Imagine you've been hired by a company to help provide resources about vulnerable populations. Your final assignment is to develop a pamphlet for an organization with information about a population...
-
The quantitative technique that would be most helpful to an internal auditor in evaluating projected general and administrative expense is: a. Game theory. b. Regression analysis. c. Probability...
-
What are the ethical concerns that apply to the various bootstrapping techniques discussed in this chapter?
-
When an auditor says "I have found, " it means: a. He or she personally, or through assistants, observed the condition. b. The condition is a matter of record. c. A high-placed executive informed the...
-
The underlying theory of regression analysis is that: a. No two variables are alike. b. Dependent variables act in an un- predictable manner. c. Independent variables never act alone. d. The behavior...
-
When an expert, acknowledged in the field, is used to evaluate quantita- tive models and methods employed: a. The internal auditor can safely re- linquish his or her audit responsi- bilities. b. The...
-
Use the following information to prepare a bank reconciliation for Fast Company at June 30: 1 Balance per Cash account, June 30. $7,015.40 2 Balance per bank statement, June 30. $7,235.85 3 Deposits...
-
Identify the most stable compound:
-
a. A $1,000 bond has a 7.5 percent coupon and matures after 10 years. If current interest rates are 10 percent, what should be the price of the bond? b. If after six years interest rates are still 10...
-
EMM, Inc. has the following balance sheet: a. If the firm expects sales to rise from $20,000 to $25,000, what are the forecasted levels of accounts receivable, accounts payable, and inventory? b....
-
The financial manager of a firm determines the following schedules of cost of debt and cost of equity for various combinations of debt financing: a. Find the optimal capital structure (that is,...
-
The balance sheets of Parkway plc for 20X7 and 20X8 are given below, together with the profit and loss account for the year ended 30 June 20X8. 1 The freehold land and buildings were purchased on 1...
-
Aspirations Ltd commenced trading as wholesale suppliers of office equipment on 1 January 20X1, issuing ordinary shares of 1 each at par in exchange for cash.The shares were fully paid on issue, the...
-
The historical cost accounts of Smith plc are as follows: 1 Land and buildings were acquired in 20X0 with the buildings component costing 800,000 and depreciated over 40 years. 2 Share capital was...
Study smarter with the SolutionInn App