Solved: Trend analysis and common-sized financial statements, Finance Basics

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Trend analysis and common-sized financial statements

Question 1: Why is trend just as important if not more important than information that pertains to only one year?

Question 2: What is meant by "presentation of financial statement information in common-size amounts rather than dollar amounts?" Why is this type of presentation sometimes more meaningful than use of actual dollar amounts?

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Finance Basics: Trend analysis and common-sized financial statements

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Finance Basics: Trend analysis and common-sized financial statements

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