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 referted to as a comparative analysis and trend analysis, respectively. A common size analysis requires the representation of financial statement data relative to a single financial statement item (or base account ar value). What is the most commonly used base item for a common size balance sheet? Earnings before interest and taxes Net sales Total assets Net income Suppose you are conducting an analysis of the financial performance of Cute Camel Woodcraft Compamy over the past three years. The company did not issue new shares during these three years and has feced some operational difficulties, The company has thus pllot tested some new forecasting strategles for better operations management. You have collected the company's relevant financial data, made reasenable assumptions based on the information available, and caiculated the following ratios. Aased 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 imventory turnover ratio could lkely be explained by operational difficulties that the compamy faced, which led to duplicate orders placed to vendors. Cute Camel Woodcraft Company's abilty to meet its debt obligations has improved since its debt-to-equity ratio decreased from 0.50 to 0.32 A dectine in the debt-to-equity ratio imples a decline in the creditworthiness of the firm. A plausible reason why cute Gamel Woodcraft Company's price-to-cosh-flow ratio has docreased is that investors expect lower cash fow