A common size analysis requires the representation of financial statement data relative to a single financial statement item (or base account or value). What is the most commonly used base item for a common size balance sheet? Net sales Earnings before interest and taxes Total assets Net income Suppose you are conducting an analysis of the financial performance of Fuzzy Button Clothing Company over the past three years. The company did not issue new shares during these three years, and has faced some operational difficulties. The company has thus pilot tested some new forecasting strategies for better operations management. You have collected the company's relevant financial data, made reasonable assumptions based on the information available, and calculated the following ratios. Based on the preceding information, your calculations, and your assumptions, which of the following statements can be included in your analysis report? Check all that apply. A decline in the inventory turnover ratio can be explained by the new inventory management system that the company recently adopted, which led to more efficient inventory management. Fuzzy Button Clothing Company's ability to meet its debt obligations has improved since its debt-to-equity ratio decreased from 0.20 to 0.13. A decline in the debt-to-equity ratio implies a decline in the creditworthiness of the firm. A decline in the inventory turnover ratio could likely be explained by operational difficulties that the company faced, which led to duplicate orders placed to vendors