Pippin Piping Co. manufactures decorative fabric trims. The company's financial statements follow. Required a. Prepare a horizontal

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

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

Required
a. Prepare a horizontal analysis for 2016. 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 2015 and 2016.)
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 2015 and 2016.)
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 2015 and 2016.)
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 your conclusion?

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...
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Managerial Accounting

ISBN: 978-1119343615

3rd edition

Authors: Charles E. Davis, Elizabeth Davis

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