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





Required
a. Prepare a horizontal analysis for 2013. 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 2012 and 2013.)
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 2012 and 2013.)
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 2012 and 2013.)
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 yourconclusion?
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