Use the common-size financial statements prepared for Study Problem 4-1 to respond to your boss's request that you write up your assessment of the firm's financial condition. Specifically, write up a brief narrative that responds to the following:
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 percentage 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 expense.