To create a common-size income statement for a firm one would typically divide each time on the income statement by:
A)total assets.
B)total equity.
C)net sales.
D)net income.

Question

Quizplus · Accepted Answer

To create a common-size income statement, each line item on the income statement is divided by a common base amount. Net sales is typically used as the common base amount to represent 100% of the revenue generated by the firm.

To Create a Common-Size Income Statement for a Firm One