Question

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: LOADING.... 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. 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. Complete the​ common-size balance sheet​ below:  ​(Round to one decimal​ place.) Common-Size Balance Sheet 2016 Cash and marketable securities $ 530 % Accounts receivable 5,980 Inventory 9,490 Total current assets $ 16,000 % Net property, plant, and equipment 17,020 Total assets $ 33,020 % Accounts payable $ 7,150 % Short-term debt 6,760 Total current liabilities $ 13,910 % Long-term liabilities 7,050 Total liabilities $ 20,960 % Total common stockholders’ equity 12,060 Total liabilities and shareholders’ equity $ 33,020 %

Answer 1

Ans.	PATTERSON PRINTING COMPANY
	COMMON SIZE BALANCE SHEET OF 2016
	ASSETS				LIABILITIES and OWNERS' EQUITY
		2016	%			2016	%
	Current Assets				Current Liabilities
	Cash and marketable securities	530	1.6%		Accounts payables	7150	21.7%
	Accounts receivables	5980	18.1%		Short term debt	6760	20.5%
	Inventory	9490	28.7%		Total current liabilities (a)	13910	42.1%
	Total current assets	16000	48.5%
					Long term liabilities (b)	7050	21.4%
	Net property, plant and				Total liabilities (c = a+b)	20960	63.5%
	equipment	17020	51.5%
					Total common stockholders' equity (d)	12060	36.5%
	Total assets	33020	100.0%		Total liabilies and shareholders' equity (c+d)	33020	100.0%
	*Calculations:
	Percentage for 2016 (assets side) = Particular asset of 2016 / total assets * 100
	Percentage of 2016 (liabilities side) = Particular liability of 2016 / Total liabilities and owners' equity * 100