One of the most important applications of ratio analysis is to compare a company's performance with that of other players in the industry or to compare its own performance over a period of time. Such analyses are referred to as a comparative analysis and trend anaiysis, respectively. A common sine 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 income Net sales Earnings before interest and taves Total assets Suppose you are conducting an analysis of the financial performance of Cute Camel Woodcraft Company over the past three vears The company did not issue new shares during these three years and has faced some operational difficulties. The company has thus pliot tested some new forecasting strategits for better operations management. You have collected the compamy's relevant financiai date, made reasonable assumptions based on the information avalable, 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. A plausible reason why Cute Camel Woodcraft Company's price-to-cash-flow ratio has decreased is that investors expect lower cash flow per share in the future. 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