Case Question 12-22 Pippin Piping Co. manufactures decorative fabric trims. The company's financial statements follow. Pippin Piping Co. Comparative Income Statements For the Years Ended December 31 2016 2015 Sales revenue $576,600 $523,000 Cost of goods sold 291,000 259,200 Gross margin 285,600 263,800 Operating expenses 106,200 104,600 Operating income 179,400 159,200 Other revenue 22,500 15,900 Interest expense 11,200 10,500 Income before income tax 190,700 164,600 Income tax expense (40%) 76,280 65,840 65,840 Net income $114,420 $98,760 2014 $484,200 234,300 249,900 104,100 145,800 23,900 11,900 157,800 63,120 $94,680 2015 $25,800 127,000 80,700 10,000 243,500 576,000 $819,500 2014 $20,500 94,300 56,000 4,600 175,400 540,300 $715,700 Pippin Piping Co. Comparative Balance Sheets As of December 31 Assets 2016 Cash $32,000 Accounts receivable (net) 126,860 Inventory 60,000 Prepaid expenses 11,000 Total current assets 229,860 Property & equipment (net) 668,900 Total Assets $898,760 Liabilities and Stockholders' Equity Accounts payable $53,120 Accrued expenses 11,000 Total current liabilities 64,120 Long-term debt 170,000 Total liabilities 234,120 Stockholders' Equity Common stock, $0.50 par value 6,000 Additional paid-in capital 99,000 Retained earnings 559,640 $81,200 12,240 93,440 160,000 253,440 $79,100 41,700 120,800 150,000 270,800 6,000 99,000 461,060 5,000 62,000 377,900 Total stockholders' equity Total Liabilities and Stockholders' Equity 664,540 5999,760 566,000 $819,500 444.000 5715,700 Additional information Closing stock price Shares outstanding Dividends pald per share 2016 $38 12,000 $1.32 2015 $35 12,000 $1.30 2014 $30 10,000 $1.25 (a) Prepare a horizontal analysis for 2016. (Round percentage answers to I decimal places, e.g. 52.7. List Assets in order of liquidity. Do not leave any answer field blank. Enter o for amounts. Enter negative amounts using either a negative sign preceding the number, e.g.-15.) Income Statement 2016 2015 change % change Assets 2016 2015 $ change % change Liabilities & Stockholders' Equity Stockholders' Equity Click if you would like to Show Work for this question: Open Show Work