Pippin Piping Co. manufactures decorative fabric trims. The company's financial statements follow.

Required
a. Prepare a horizontal analysis for 2016. What significant changes do you see?
b. Prepare common-size financial statements for the three years. What significant changes do you see?
c. Assess Pippin's liquidity. Has it improved or deteriorated over the three-year period?
How did you reach your conclusion? (For ratios that require average balances, only calculate ratios for 2015 and 2016.)
d. Assess Pippin's leverage. Has it improved or deteriorated over the three-year period?
How did you reach your conclusion? (For ratios that require average balances, only calculate ratios for 2015 and 2016.)
e. Assess Pippin's profitability. Has it improved or deteriorated over the three-year period?
How did you reach your conclusion? (For ratios that require average balances, only calculate ratios for 2015 and 2016.)
f. Is Pippin's financial leverage positive or negative? How do you know?
g. How does the market view Pippin? Has the market's outlook improved or deteriorated over the three-year period? How did you reach your conclusion?

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Pippin Piping Co Comparative Income Statements For the Years Ended December 31 $576,600 291,000 285,600 106,200 2015 $523,000 259,200 263,800 104,600 $484,200 234,300 249,900 104,100 145,800 23,900 11,900 157,800 es revenue Cost of goods sold ross Operating expenses 179,400 22,500 11,200 ncome Other revenue Interest expense Income before income tax Income tax Net income 15,900 10,500 164,600 65,840 76,280 $114,420 94,680 Pippin Piping Co Comparative Balance Sheets As of December 31 32,000 126,860 60,000 11,000 229,860 668,900 S 25,800 127,000 80,700 10,000 243,500 57600 S819,500 Cash Accounts receivable (net) 94,300 56,000 4,600 175,400 540,300 $715,700 Prepaid expenses Total current assets Property & equipment (net) Total Assets Liabilities and Stockholders' Equity 79,100 41,700 120,800 150,000 270,800 Accounts payable Accrued expenses 11,000 Total current liabilities 93,440 160,000 253,440 Long-term debt 170,000 234,120 Total liabilities Stockholders' Equity Common stock, $0.50 par value Additional paid-in capital Retained earnings 6,000 559,640 664,640 Total Liabilities and Stockholders Equity $898,760 99,000 461,060 566,060 $819,500 5,000 62,000 377,900 444,900 $715,700 Total stockholders' equity Additional information 2015 2014 Closing stock price Shares outstanding Dividends paid per share 10,000