What are the benefits of preparing and using a common size balance sheet and/or income statement? Why would you use this in your analysis? What are the pros and cons of using this instead of ratios?© BrainMass Inc. brainmass.com October 5, 2022, 6:57 pm ad1c9bdddf
Common size balance sheets & income statements are standardized financial statements presenting all items in percentage terms. Balance sheet items are presented as a percentage of assets and income statement items are presented as a percentage of sales. In this form, financial statements are relatively easy to read and compare. For example in performing a ...
Benefits of preparing and using a common size balance sheet and/or income statement are expressed in this solution.