True or False

1.The total assets dollar amount is typically not used as the base for a common-size balance sheet analysis.

2.If Company A had earnings per share of $4 and Company B had earnings per share of $3, then it is accurate to conclude that Company A was more profitable.

3.In general, managers prefer expenses as a percent of net sales to increase over time.

4.Return on assets is calculated as average total assets divided by net income.

5.Return on assets is a market valuation measure.