Indicate Whether Each of the Following Statements Is True or False

Short Answer

Indicate whether each of the following statements is true or false.
_____ a)A common size income statement facilitates comparison between two or more companies of different size and in the same industry.
_____ b)A common size income statement is prepared by dividing the various amounts reported on the income statement by the amount of total assets.
_____ c)A common size income statement is helpful in comparing the results of operations in different time periods.
_____ d)The gross margin percentage is computed by dividing gross margin by net income.
_____ e)Return on sales is computed by dividing net income by net sales.