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Sales 100%,Cost of Goods Sold 50%,Gross Profit 50%,The importance of the common size statement can’t be overstated. It offers you the calculation of all your revenue margins, from gross to net, and shows how much every cost item takes away from your profits.Create a Year-to-Year Comparison Statement.The next phase is to make a year-to-year comparison statement. You can’t evaluate financial statements for just a single year; they have to be compared to original years. The only formula you need to know for these calculations is:
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