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    benefits of preparing and using a common size balance sheet and/or income statement

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    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 9, 2019, 5:55 pm ad1c9bdddf
    https://brainmass.com/business/financial-statements/benefits-common-size-balance-sheets-income-statements-72166

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    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 ...

    Solution Summary

    Benefits of preparing and using a common size balance sheet and/or income statement are expressed in this solution.

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