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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Liabilities and Stockholders' Equity $53,120 11,000 64,120 170,000 234,120 $ 81,200 12,240 93,440 160,000 253,440 $ 79,100 41,700 120,800 150,000 270,800 Accounts payable Accrued expenses Total current liabilities Long-term debt Total liabilities Stockholders' Equity Common stock, $0.50 par value Additional paid-in capital Retained earnings 6,000 99,000 559,640 664,640 $898,760 5,000 62,000 377,900 444,900 $715,700 6,000 461,060 566,060 $819,500 Total stockholders' equity Total Liabilities and Stockholders' Equity Additional information 2013 2012 $ 35 12,000 $ 1.30 2011 Closing stock price Shares outstanding Dividends paid per share $ 38 12,000 $ 1.32 10,000 $ 1.25