jgmarsh posted a question Jul 28, 2013 at 4:36pm
Which of the following ratios appears on a common-size balance sheet?

I. Debt to asset ratio
II. Net working capital to total assets
III. Net profit margin

A. I , II, III
B. I only
C. I and III
D. III only

Proposed Answer: C.

Explanation: Net Profit Margin is only shown on a balance sheet and not on a common-size balance sheet which compares balance sheet to income statement.

Is this correct?
answered the question Jul 28, 2013 at 4:41pm
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Hi Student,

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Net profit margin appears on a common-size balance sheet. You are correct here
Debt to total assets is also available from the common size statement. Hence correct option is
C