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How do you create a common size balance sheet with all assets as a percentage of total assets

Question

How do you create a common size balance sheet with all assets as a percentage of total assets

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Step 1

Common size statement analysis, as the name suggests, first converts the financial statement as a percentage of a selected parameter from the financial statement. The parameter should usually be the most important and largest item on the statement.

Step 2

There are two types of common size statement analysis:

  • Vertical common size statements analysis:
  • Horizontal common size statement analysis
Step 3

This question pertains to vertical common size analysis. ...

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