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 analysis, respectively. A common size analysis requires the representation of financial statement data relative to 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 Earnings before interest and taxes Total assets Net sales Suppose you are conducting an analysis of the financial performance of Blue Hamster Manufacturing Inc, over the past three years. The company did not issue new shares during these three years, and has faced some operational difnculties, The cempary 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 thit information avaisable, and calculated the following ratios. Suppose you are conducting an analysis of the financial performance of Blue Hamster Manufacturing Inc. 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 avaliable, 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 debt-to-equity ratio implien a decline in the creditworthiness of the firm. A kecline in the inventory turnover ratio could likely be explained by operational difficulties that the company faced, which led to duplicate orders placed to vendors. A plausible reason why Blue Harnster Manufacturing Inc.'s price/cash flow ratio has decreased is that investors expect lower cash flow per share in the future. Blue Hamster Manufacturing Inc's ability to meet its debt obligations has improved since its debt-to-equity ratio decreased from 0.30 to 0.19