Which of the following statements is true regarding common-size statements?
1、 Common-size statements can be used to compare companies of different sizes.
2、 Horizontal common-size statements can be made only for companies with at least ten years of operational data.
3、 All of the other three answers are correct.
4、 Common-size statements indexed over two years for two companies, with both showing a 10% increase in profits, show that both companies would make equally attractive investments.