Builder's Outlet just hired a new chief financial officer. To get a feel for the company, she wants to compare the firm's sales and costs over the past 3 years determine if any trends are present and also determine where the firm might need to make changes. Which one of the following statements will best suit her purposes?

Question

Quizplus · Accepted Answer

The best choice for the CFO would be a common-size income statement as it allows for a comparison of sales and costs over the past 3 years, indicating any trends or areas for improvement. The other options, such as the balance sheet and statement of cash flows, do not provide the same level of detail in analyzing sales and costs. Common-size balance sheets could be useful for analyzing the firm's assets and liabilities, but it would not provide the necessary information for a sales and cost analysis.

Builder's Outlet Just Hired a New Chief Financial Officer