(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: LOADING... . 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. 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. Complete the common-size balance sheet below: (Round to one decimal place.) Common-Size Balance Sheet 2016 Cash and marketable securities $ 510 % Accounts receivable 6,020 Inventory 9,450 Total current assets $ 15,980 % Net property, plant, and equipment 17,020 Total assets $ 33,000 % Accounts payable $ 7,240 % Short-term debt 6,810 Total current liabilities $ 14,050 % Long-term liabilities 7,040 Total liabilities $ 21,090 % Total common stockholders’ equity 11,910 Total liabilities and shareholders’ equity $ 33,000

Principles of Accounting Volume 1

19th Edition

ISBN:9781947172685

Author:OpenStax

Publisher:OpenStax

Chapter13: Long-term Liabilities

Section: Chapter Questions

Problem 3TP: Assume you are a newly-hired accountant for a local manufacturing firm. You have enjoyed working for...

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(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:

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.

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.

Complete the common-size balance sheet below: (Round to one decimal place.)

Common-Size Balance Sheet		2016
Cash and marketable securities	$	510	%
Accounts receivable		6,020
Inventory		9,450
Total current assets	$	15,980	%
Net property, plant, and equipment		17,020
Total assets	$	33,000	%
Accounts payable	$	7,240	%
Short-term debt		6,810
Total current liabilities	$	14,050	%
Long-term liabilities		7,040
Total liabilities	$	21,090	%
Total common stockholders’ equity		11,910
Total liabilities and shareholders’ equity	$	33,000

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