Question: Common size financial statements will help you in your time - series analysis and will give you a better idea of what is going on
Common size financial statements will help you in your timeseries analysis and will give you a better idea of what is going on in the company. Go to the Income Statement and the Balance Sheet tabs and create a commonsize statement out to the side of the original ones. I have included a blank format for you Then complete a financial statement analysis listing a few points of interest. You should also mention some of your findings in your Summary Part A financial statement analysis is basically just taking a look at the financial statements to get an overall picture of the company. For instance, by looking at the amount of revenues generated, you can get an idea about the size of a company and by looking at multiple years, you can learn if the revenues are growing or declining. Both are important bits of information about the company.
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