Use the common-size financial statements found here: LOADING... 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.

Common-Size Balance Sheet		2016
Cash and marketable securities	$	500	1.5	%
Accounts receivable		6,050	18.3
Inventory		9,480	28.7
Total current assets	$	16,030	48.5	%
Net property, plant, and equipment		17,010	51.5
Total assets	$	33,040	100	%
Accounts payable	$	7,200	21.8	%
Short-term notes		6,820	20.6
Total current liabilities	$	14,020	42.4	%
Long-term liabilities		6,960	21.1
Total liabilities	$	20,980	63.5	%
Total common shareholders equity		12,060	36.5
Total liabilities and shareholders equity	$	33,040	100	%

Common-Size Income Statement		2016
Revenues	$	29,950	100	%
Cost of goods sold		-19,970	66.7
Gross profit	$	9,980	33.3	%
Operating expenses		-7,980	26.6
Net operating income	$	2,000	6.7	%
Interest expense		-900	3
Earnings before taxes	$	1,100	3.7	%
Income taxes		-400	1.3
Net income	$	700	2.3	%