(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. wwws Common Size Darance omfeer 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 $ S S $ S S ZUTU 500 6,000 9,500 16,000 17,000 33,000 7,200 6,800 14,000 7,000 21,000 1.5 % 18.2 28.8 48.5% 51.5 100.0 % 21.8% 20.6 42.4 % 21.2 63.6% Ho Common-Size Income Statement Revenues Cost of goods sold Operating expenses Gross profit Net operating income Interest expense Earnings before taxes Income taxes Net income $ $ S S S 2016 30,000 (20,000) 10,000 (8,000) 2,000 (900) 1,100 (400) 700 100.0 % 66.7 33.3% 26.7 6.7% 3.0 3.7 % 1.3 2.3 3%