Which of the following is false?

An average collection period far below the industry norm may indicate that the

firm's credit policy is hurting sales by restricting credit to the very best

customer.

The income statement shows the effects of a company's operating, investing,

and financing activities on its cash flows.

A common$-$size balance sheet shows the firm's assets and liabilities as a

percentage of total assets.

Financial leverage ratios indicate the firm's capacity to meet its short$-$term

financial obligations and long$-$term financial obligations.