One reason that a common-size statement is a useful tool in financial analysis is that it enables the user to
a. determine which companies in a single industry are of the same value.
b. determine which companies in a single industry are of the same size.
c. judge the relative potential of two companies of similar size in different industries.
d. make a better comparison of two companies of different sizes in the same industry.
Under which of the following cases may a percentage change be computed?
a. There is a negative amount in the base year and a positive amount in the subsequent year.
b. There is a negative amount in the base year and a negative amount in the subsequent year.
c. The trend of the amounts is decreasing but all amounts are positive.
d. There is no amount in the base year
Assume the following sales data for a company:
What is the percentage increase in sales from 2009 to 2010?