I am not sure of the correct way to make a comparative common-size income statement when comparing 3 companies. In the question, it says "prepare comparative common-sized income statements for each company." Notice it says statements...
I am not sure of the correct way to make a comparative common-size income statement when comparing 3 companies. In the question, it says "prepare comparative common-sized income statements for each company." Notice it says statements...
Financial Accounting: The Impact on Decision Makers
10th Edition
ISBN:9781305654174
Author:Gary A. Porter, Curtis L. Norton
Publisher:Gary A. Porter, Curtis L. Norton
Chapter13: Financial Statement Analysis
Section: Chapter Questions
Problem 13.18MCE
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I am not sure of the correct way to make a comparative common-size income statement when comparing 3 companies.
In the question, it says "prepare comparative common-sized income statements for each company." Notice it says statements...
Do I make one spreadsheet with all the particulars, ie revenue, cogs, expenses, then list all three of the companies amounts and percentages for each particular?
or
Do I make 3 different income statements with their own particulars, amounts and percentages to then compare them? If so do I title the income statement as "Comparative Income Statement"?
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