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?

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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