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Trend Analysis and Common-Sized Financial Statements

Why is trend just as important if not more important than information that pertains to only one year?

What is meant by "presentation of financial statement information in common-size amounts rather than dollar amounts?" Why is this type of presentation sometimes more meaningful than use of actual dollar amounts?

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Why is trend just as important if not more important than information that pertains to only one year?

Even the largest corporation is not immune to one-time traumas. A corporation's earnings can unexpectedly drop due to a natural disaster at the location of its largest plants (such as the losses which Toyota experienced when its main plant in Japan was damaged by a tsunami) or can unexpectedly rise due to a supply/demand imbalance for its raw materials or labor. It is not unusual for a company to perform particularly well or poorly in one year ...

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