Common Base Year Financial Statements Trend Analysis

Imagine we were given balance sheets for the last 10 years for some company and we were trying to investigate trends in the firm's pattern of operations. Does the firm use more or less debt? Has the firm grown more or less liquid? A useful way of standardizing financial statements in this case is to choose a base year and then express each item

Ross et al.: Fundamentals of Corporate Finance, Sixth Edition, Alternate Edition

II. Financial Statements and Long-Term Financial Planning

3. Working with Financial Statements

© The McGraw-Hill Companies, 2002

CHAPTER 3 Working with Financial Statements

PRUFROCK CORPORATION Common-Size Income Statement 2002

Business Brain

Business Brain

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