Question: On a common-size income statement, all items are shown as O percentages of net income. O percentages of total assets. O percentages of gross revenue.




On a common-size income statement, all items are shown as O percentages of net income. O percentages of total assets. O percentages of gross revenue. O percentages of gross profit. The following data was taken from the accounting records of White Oleander Corporation 2020 2012 Total assets $950,000 $850,000 Total liabilities 250,000 240,000 Preferred shares 75,000 75,000 Common shares 300,000 300,000 Retained earnings 325,000 235,000 Additional data: Net income Interest expense Sales revenue 140,000 25,000 980,000 The return on equity for 2020 is, 20.0%. O 21.4% O 26.7%. 046.7%. Lonesome Inc had the following activity during 2020 Sales $1,250,000 Interest expense Cost of sales 787.500 Income tax expense Selling & Admin. expenses 252300 $41.000 27,400 The interest coverage ratio during 2020 05.13 5.80 07.69 11.28 Changes in the profit margin ratio could indicate changes in any of the following except changes in sales volume O product profitability the cost structure. the pricing policy Limitations in ratio analysis include all of the following except for O seasonality diversity of operations potential manipulation O cross-sectional analysis
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