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Common-size statements: 1.Reveal changes in the relative importance of each financial statement item to a base amount. 2 Do not emphasize the relative importance of

Common-size statements:

1.Reveal changes in the relative importance of each financial statement item to a base amount.

2 Do not emphasize the relative importance of each item.

3. Compare financial statements over time.

4. Show the dollar amount of change for financial statement items.

5. Reveal patterns in data across successive periods.

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