Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Would anyone be able to help me with this? (Analyzing common-size financial statements) Use the common-size financial statements found here to respond to your boss'

image text in transcribedimage text in transcribedimage text in transcribed

Would anyone be able to help me with this?

(Analyzing common-size financial statements) 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.) 2016 $ 1.4 % 450 6,010 18.2 28.9 48.4 % 9.530 15.990 17,030 33,020 51.6 100.0 % Common-Size Balance Sheet Cash and marketable securities Accounts receivable Inventory Total current assets Net property, plant, and equipment Total assets Accounts payable Short-term notes Total current liabilities Long-term liabilities Total liabilities Total common shareholders' equity Total liabilities and shareholders' equity A 21.7 % 20.6 $ 7,170 6,800 13,970 7,030 21,000 42.3 % 21.3 Go 63.6 % 36.4 12,020 33,020 $ 100.0 % Common-Size Income Statement 2016 2016 100.0 % 66.6 $ 33.4 % Common-Size Income Statement Revenues Cost of goods sold Gross profit Operating expenses Net operating income Interest expense Earnings before taxes Income taxes 26.5 30,000 (19,980) 10,020 (7,960) 2,060 (910) 1,150 (418) 732 6.9% 3.0 $ 3.8 % 1.4 Net income $ 2.4 %

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Introductory Econometrics For Finance

Authors: Chris Brooks

3rd Edition

1107661455, 9781107661455

More Books

Students also viewed these Finance questions

Question

Describe effectiveness of reading at night?

Answered: 1 week ago

Question

find all matrices A (a) A = 13 (b) A + A = 213

Answered: 1 week ago