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In addition to common - size financial statements, common - base year financial statements are often used. Common - base year financial statements are constructed
In addition to commonsize financial statements, commonbase year financial statements
are often used. Commonbase year financial statements are constructed by dividing the
current year account value by the base year account value. Thus, the result shows the
growth rate in the account.
Construct the commonsize balance sheet and commonbase year balance sheet for the
company. Use as the base year. Do not round intermediate calculations. Enter
your commonsize answers as a percent and your commonbase year answers as a
times. Round your commonsize answers to decimal places, eg and
commonbase year answers to decimal places, eg
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