# What do you do when you compare two stories?

## What do you do when you compare two stories?

To compare two stories, we need to consider their similarities and differences pertaining to main ideas, themes, tone, characters, greater contributions, inspirations, opinions, etc.

How do you compare two works of literature?

You may be asked to compare two or more literary works, theories, arguments or historical events. In literature, a comparative essay typically asks you to write an essay comparing two works by the same writer. For example, you may be asked to write a comparative essay comparing two plays written by William Shakespeare.

How do you do a comparative analysis on a balance sheet?

Steps To Prepare a Comparative Balance SheetFirstly, specify absolute figures of assets and liabilities relating to the accounting periods considered for analysis. Find out the absolute change in the items mentioned in the balance sheet.

### How do you compare two companies on a balance sheet?

One of the most effective ways to compare two businesses is to perform a ratio analysis on each company’s financial statements. A ratio analysis looks at various numbers in the financial statements such as net profit or total expenses to arrive at a relationship between each number.

How do you interpret a comparative income statement?

Comparative income statement example The easiest way to create a comparative income statement is to list the accounts in the left column. Then, create columns for each accounting period with the most current closest to the left. Take a look at each example of a comparative income statement.

How do you prepare a common size balance sheet?

The calculation for common-size percentages is: (Amount / Base amount) and multiply by 100 to get a percentage. Remember, on the balance sheet the base is total assets and on the income statement the base is net sales.

## How do you read a common size balance sheet?

Common size statements display all line items as percentages of a common base line item figure. So, for example, on a balance sheet asset line items are expressed as a percentage of total assets, while liability and equity line items are expressed as a percentage of total liabilities and shareholders’ equity.

How do you do a common size statement?

Analysts common size an income statement by dividing each line item (for example, gross profit, operating income and sales and marketing expenses) by the top line (sales). Each item is then expressed as a percentage of sales.

How do you read common size statements?

How to Analyze Common Size Income StatementStep 1: Set Up. First, as discussed, set up the common size for the last 5 years. Step 2: Margins. Compare the margins over the period and see if there is a trend or an unusual spike or dip. Step 3: Analyze Each Line. Step 4: Dig Through Notes. Step 5: Put It All Together.

### What is the best use for these common size statements?

What is the best use for these common-size statements? Common size statements are usually prepared for the income statement and balance sheet. It expresses all balance sheet accounts as percentages and all income statements accounts as percentages.

What is a common size balance sheet?

A common size balance sheet is a balance sheet that displays both the numeric value and relative percentage for total assets, total liabilities, and equity accounts.

What are the objectives of common size statement?

Objectives of common-size income statement are to analyse change in individual items of statement of profit and loss, to study the trend in different items of revenues and expenses and to assess the efficiency of the enterprise.

## What is a common size ratio?

Common size ratios are used to compare financial statements of different-size companies, or of the same company over different periods. The ratios often are expressed as percentages of the reference amount.

What is the other name of common size statement?

Common Size Income Statement The income statement (also referred to as the profit and loss (P&L) statement) provides an overview of flows of sales, expenses, and net income during the reporting period.

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