(Preparing common-size financial statements) As the newest hire to the financial analysis group at Patterson Printing Company, you have been
asked to perform a basis financial analysis of the company's most recent financial statements. The 2016 balance sheet and income statement for the
Patterson are shown here: 囲.
a. After discussing your training asignment with a fellow analyst who was hired last year, you learn that the first step in your completing the
assignment is to prepare a common-size balance sheet for Patterson.
b. The second step is to prepare a common-size income statement for the firm.
Balance Sheet, December 31, 2016
Cash and marketable securities $450
Accounts receivable 6,000
Inventory ,9,450
Total current assets $15,900
Net property, plant, and equipment 17,010
Total assets $32,910
Accounts payable $7,160
Short-term debt 6,800
Total current liabilities $13,960
Long-term liabilities 7,010
Total liabilities $20,970
Total common stockholders' equity 11,940
Total liabilities and stockholders' equity $32,910
statements) As the newest hire to the financial analysis group at Patterson Printing Company,you have been
asked to perform a basis financial analysis of the company's most recent financial statements. The 2016 balance sheet and income statement for the Patterson are shown here:
a. After discussing your training asignment with a fellow analyst who was hired last year, you learn that the first step in your completing the
b. The second step is to prepare a common-size income statement for the firm.
Common-Size Balance Sheet
2016 450 6,000 9,450 15,900 17,010 32,910
Cash and marketable securities
%
Accounts receivable Inventory Total current assets
%
Net property, plant, and equipment
Balance Sheet, December 31, 2016 Cash and marketable securities $450 Accounts receivable 6,000 Inventory 9,450 Total current assets $15,900 Net property, plant, and equipment 17,010 Total assets $32,910 Accounts payable $7,160 Short-term debt 6,800 Total current liabilities $13,960 Long-term liabilities 7,010 Total liabilities $20,970 Total common stockholders' equity 11,940 Total liabilities and stockholders' equity $32,910
Total assets Accounts payable
$
% %
7,160 6,800 13,960 7,010 20,970 11,940[ 32,910
Short-term debt
Total current liabilities Long-term liabilities Total liabilities Total common stockholders' equity
S
%
%
Total liabilities and shareholders'equity
S
