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If a company has net sales of \$200,000 and cost of goods sold of \$80,000, what is the common size percentage for cost of goods sold?
How do common size statements facilitate comparison between companies of different sizes?
What is the primary purpose of common size statements in financial analysis?
A company reports net sales of \$500,000 and income from operations of \$150,000. What does the income from operations percentage indicate about the company's operational efficiency?
A company has total assets of \$800,000 and inventory of \$160,000. What is the common size percentage for inventory?
A company has total liabilities and equity of \$600,000 and accounts payable of \$120,000. What is the common size percentage for accounts payable?
Why is it important to understand the base amount in common size statements?
A company reports net sales of \$300,000, operating expenses of \$90,000, and net income of \$60,000. What is the common size percentage for operating expenses?
How do common size statements facilitate comparison between companies of different sizes?
What is the significance of the base amount in common size statements?