The variables on a balance sheet are flow measures or measures of change. O stock measures or measures of change. O flow measures or accumulations. O stock measures or accumulations. Question 2 Liability and equity variables on the balance sheet are listed in order of size. O maturity date. risk. O liquidity, To common-size a balance sheet, all variables are restated as a O percentage of net income. O percentage of sales revenue. O percentage of total assets. percentage of stockholders' equity CoA Sales Revenue 100% 100% -Cost of Goods Sold -70% -58% Gross Profit 30% 42% -Operating Expenses -18% -16% Operating Profit 12% 26% -Taxes - 3% - 6% Net Income 9% 20% Which statement is correct regarding the common-size income statements? O Company B manages its costs better than Company A. Company B has more bankruptcy risk than Company A. Company B has higher fixed asset turnover than Company A. Company B is more liquid than Company A. The company's Debt Ratio is 33% and the industry Debt Ratio is 28%. Wich statement is correct? The company is 15% weaker in long-term solvency than the industry. The company is 18% stronger in long-term solvency than the industry. The company is 18% weaker in long-term solvency than the industry. The company is 4% stronger is long-term solvency than the industry. Question 7 2p The company's Return on Assets is 7.5% and the industry Return on Assets is 6.5%. Which statement is correct? The company is 7% stronger in asset management than the industry. The company is 1% stronger in asset management than the industry. The company is 13% stronger in profitability than the industry. The company is 15% stronger in profitability than the industry