Use the financial statements for Fairplay Inc. provided in E12-5 to respond to the following: a. Prepare

Question:

Use the for Fairplay Inc. provided in E12-5 to respond to the following:
a. Prepare trend (horizontal analysis) balance sheets and income statements for 2016, 2017, and 2018. Use 2016 as the base year.
b. Analyze and interpret the trend you prepared.
c. How are these trend statements more useful than the statements originally prepared by Fairplay?
d. Why would it be unwise to examine the trend without considering the originally prepared by Fairplay?

Financial Statements
Financial statements are the standardized formats to present the financial information related to a business or an organization for its users. Financial statements contain the historical information as well as current period’s financial...