Question

​(Analyzing common-size financial​ statements) Use the​ common-size financial statements found​ here:

Common-Size Balance Sheet		2016
Cash and marketable securities	$	500	1.5	%
Accounts receivable		6,000	18.2
Inventory		9,450	28.7
Total current assets	$	15,950	48.4	%
Net property, plant, and equipment		16,980	51.6
Total assets	$	32,930	100.0	%
Accounts payable	$	7,240	22.0	%
Short-term notes		6,750	20.5
Total current liabilities	$	13,990	42.5	%
Long-term liabilities		6,990	21.2
Total liabilities	$	20,980	63.7	%
Total common shareholders’ equity		11,950	36.3
Total liabilities and shareholders’ equity	$	32,930	100.0	%

Common-Size Income Statement		2016
Revenues	$	29,980	100.0	%
Cost of goods sold		(19,980)	66.6
Gross profit	$	10,000	33.4	%
Operating expenses		(8,010)	26.7
Net operating income	$	1,990	6.6	%
Interest expense		(900)	3.0
Earnings before taxes	$	1,090	3.6	%
Income taxes		(396)	1.3
Net income	$	694	2.3	%

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

1.51.5​%.

​(Round to one decimal​ place.)

b. What proportion of​ Patterson's assets has the firm financed using​ short-term debt?​ Long-term debt?

The proportion of​ Patterson's assets that has been financed using​ short-term debt is

42.542.5​%.

​(Round to one decimal​ place.)The proportion of​ Patterson's assets that has been financed using​ long-term debt is

21.221.2​%.

​(Round to one decimal​ place.)

c. What percent of​ Patterson's revenues does the firm have left over after paying all of its expenses​ (including taxes)?

The percent of​ Patterson's revenues that remained after paying all of its expenses is

66.666.6​%.

​(Round to one decimal​ place.)

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

1.51.5​%.

​(Round to one decimal​ place.)

b. What proportion of​ Patterson's assets has the firm financed using​ short-term debt?​ Long-term debt?

The proportion of​ Patterson's assets that has been financed using​ short-term debt is

42.542.5​%.

​(Round to one decimal​ place.)The proportion of​ Patterson's assets that has been financed using​ long-term debt is

21.221.2​%.

​(Round to one decimal​ place.)

c. What percent of​ Patterson's revenues does the firm have left over after paying all of its expenses​ (including taxes)?

The percent of​ Patterson's revenues that remained after paying all of its expenses is

?

​(Round to one decimal​ place.)

Need help with C & D

Answer 1