1. Common Size Income Statement a. How are the ratios computed? b. How are the ratios in the statement interpreted? c. Is it possible to evaluate change in sales from this statement? 2. Common Size Balance Sheet a. How are the ratios computed? b. How are the ratios interpreted? c. Is it possible to tell whether a company has grown assets from year to year using this statement? 3. Why analyze financial statements? a. Internal b. External 4. Why use ratios instead of raw numbers to analyze statements