1. The total asset dollar amount is typically used as the base for a common size balance sheet analysis.
True or false
2. A trend percent is calculated as the current year divided by the base year.
True or false
3. During 2013, Columbia inc. had beginning accounts receivable of 680,000 and ending ac- accounts receivable of 760,000. It's net sales 4,500,000 are composed of 20%cash sales and 80% credit sales. Based on this information , what is Columbias average collection period?
A. 58.4 days
B. 292.0 days
C. 73.0 days
D.5.0 days
E. None
4. A common size analysis converts each line of financial statement data to an easily comparable amount measured in percent form .
True or false
5. If a company's return on assets is higher than its return on shareholders equity then it has positive financial leverage.
True or false