1. 3.2 Common-size statements Here is the most recent statement of profit or loss for Binalong Surf Shop. Prepare a common-size statement of profit or loss based on this information. How do you interpret the standardised profit for the year? What percentage of revenues goes to cost of sales?

Binalong Surf Shop 2020 Statement of profit or loss ($ in millions) Revenue Cost of sales Depreciation Earnings before interest and taxes Interest paid Profit before tax $4053 2816 550 $ 687 502 $ 185