A common-size balance sheet helps financial managers determine:

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A common-size balance sheet helps financial managers
determine:

A. which customers are paying on a timely basis.
B. if costs are increasing faster or slower than sales.
C. if changes are occurring in a firm’s mix of assets.
D. if a firm is generating more or less sales per dollar of assets
than in prior years.
E. the rate at which the firm’s dividends are changing.
im confused between C and E. please explain for me

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Answer

A common-size balance sheet helps financial managers
determine:

C. if changes are occurring in a firm’s mix of assets.

A common size balance sheet is an alternative form of the
traditional balance sheet financial statement. Where a normal
balance sheet expresses information as total financial figures for
a specific period in time, a common size balance sheet displays
each figure as a percentage of the total value for a class of
financial information. For example, if a company lists $1,000 US
Dollars (USD) in accounts receivable and total balance sheet
current assets of $8,000 USD, the common size statement would
report accounts receivable as 12.5 percent (1,000 / 8,000). Each
section of the balance sheet

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