Koester, Inc., states in its 2016 10-K filing with the SEC, "In October 2016, two major credit rating agencies changed Koester's long-term credit rating outlook to negative and one of the credit rating agencies reduced Koester's short-term credit rating." Koester's financial statements

(in $000) follow.

Required
a. Prepare a horizontal analysis for 2016.
b. Prepare common-size income statements for 2014, 2015, and 2016 and common-size balance sheets for 2015 and 2016.
c. Assess Koester's liquidity.
d. Assess Koester's profitability.
e. Assess Koester's leverage.
f. What data do you find that supports the credit agencies' decision to lower Koester's credit rating?

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Koester, Inc. Comparative Income Statement For the Year Ended December 31 Other nonoperating (income), net 696,254 Koester, Inc. As of December 31 Accounts receivable (net) Prepaid expenses and other current assets Property, plant, & equipment (net) Liabilities and Stockholders' Equity Current portion of long-term debt Common stock, $1.00 par value Total Liabilities and Stockholders' Equity