Koester Inc states in its 2013 10 K fi ling with
Koester, Inc., states in its 2013 10-K fi ling with the SEC that "In October 2013, 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.

a. Prepare a horizontal analysis for 2013.
b. Prepare common-size income statements for 2011, 2012, and 2013 and common-size balance sheets for 2012 and 2013.
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 creditrating?
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