Chapter 17, Problem 3DQ

To determine

Concept Introduction:

Common-size comparative financial statements:

Common-size financial statements are the statements when all the items of a financial statement are expressed in a common basis. Common sizing of balance sheet is done basically by expressing its all the items as percentage of its total assets or its total liabilities or shareholder's equity

The items which are usually assigned a 100% value on

1. A common-size balance sheet
2. A common-size income statement