Question: Use the financial statements for Fairplay Inc. provided in E12-5 to respond to the following: a. Prepare trend (horizontal analysis) balance sheets and income statements

Use the financial statements 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 financial statements 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 financial statements without considering the financial statements originally prepared by Fairplay?

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a 2016 as base year Fairplay Inc Trend Balance Sheets As of December 31 2018 2017 2016 Cash 0900 1200 1000 Accounts receivable 1503 1326 1000 Inventory 1317 1022 1000 Other current assets 1500 1375 10... View full answer

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