Question 1
Answer the following questions related to common-size financial statements?
a. | What are common-size financial statements? How are common-size financial |
statements used?
b. | What is the base for a common-size income statement? |
c. | What is the base for a common-size balance sheet? |
Question 2
Three measures of liquidity are working capital, current ratio, and acid-test ratio. What do each of these measures show, and how are they each calculated?