Question

4)

Common-Size Balance Sheet		2016
Cash and marketable securities	$	450	1.4	%
Accounts receivable		5,980	18.1
Inventory		9,530	28.9
Total current assets	$	15,960	48.3	%
Net property, plant, and equipment		17,050	51.7
Total assets	$	33,010	100.0	%
Accounts payable	$	7,220	21.9	%
Short-term notes		6,850	20.8
Total current liabilities	$	14,070	42.6	%
Long-term liabilities		7,010	21.2
Total liabilities	$	21,080	63.9	%
Total common shareholders’ equity		11,930	36.1
Total liabilities and shareholders’ equity	$	33,010	100.0	%

Common-Size Income Statement		2016
Revenues	$	29,990	100.0	%
Cost of goods sold		(20,010)	66.7
Gross profit	$	9,980	33.3	%
Operating expenses		(8,040)	26.8
Net operating income	$	1,940	6.5	%
Interest expense		(890)	3.0
Earnings before taxes	$	1,050	3.5	%
Income taxes		(382)	1.3
Net income	$	668	2.2	%

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.

The cost of goods sold represents _____% of? Patterson's sales.

The operating expenses represent _____% of? Patterson's sales.

The interest expense represents _____% of? Patterson's sales.

Answer 1

How much cash does Patterson have on hand relative to its total? assets=450/33010=1.36%

What proportion of? Patterson's assets has the firm financed using? short-term debt=6850/33010=20.75%

What proportion of? Patterson's assets has the firm financed using?? Long-term debt=7010/33010=21.24%

What percent of? Patterson's revenues does the firm have left over after paying all of its expenses?=668/29990=2.23%

The cost of goods sold represents= 20010/29990=66.72% of? Patterson's sales.

The operating expenses represent=8040/29990=26.81% of? Patterson's sales.

The interest expense represents=890/29990=2.97% of? Patterson's sales.

the above are answer..