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Common-size Analysis
• Prepare a Common-size Analysis for the Balance Sheet and Income Statement
• This should include about 12 accounts in the Balance Sheet and about 10 Income Statement accounts.
o Choose major accounts that would be important.
o I recommend you look at the accounts in Hoovers Business Records for your company to find major accounts.
• Format your graphs so they can be read. You may need more than one graph if it is too crowded.
Average of Relatives Method We have seen the construction of an index number using the aggregates method. In this section, we shall see the construction of an index using the
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