Profits might be compared with sales assets or stockholders, Finance Basics

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Profits might be compared with sales assets or stockholders

1. Profits might be compared with sales, assets, or stockholders' equity. Why might all three bases be used? Will trends in these ratios always move in the same direction?

2. What is the advantage of segregating extraordinary items in the income statement?

3. If profits as a percent of sales decline, what can be said about expenses?

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Finance Basics: Profits might be compared with sales assets or stockholders

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