Question: A common-size income statement is an analytical tool that facilitates comparisons across firms and for the same firm over time. However, it can be difficult

A common-size income statement is an analytical tool that facilitates comparisons across firms and for the same firm over time. However, it can be difficult to prepare a common- size statement for different firms because of differences in income statement classification and display. What one common-size income statement item can an analyst nearly always calculate, regardless of format and display differences?

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