Visualize an average U.S. manufacturing company, and think about its common size balance sheet and income statement. Statement 1: The purpose of a common size financial statement is to facilitate a comparison of the statement between companies (called a cross-sectional analysis) or between time periods for the same company (longitudinal analysis). Statement 2: One valuable application of common-size financial statement analysis is to benchmark a company’s performance against the best-in-industry to identify deviations and deficiencies. Statement 3: A common-size income statement expresses each account balance as a percentage of the firm’s gross sales or revenues. Statement 4: The net income value on a common size income statement is equal to the firm’s return on assets (ROA). Statement 5: A common-size balance sheet is constructed by expressing each account balance as a percentage of the statement’s total assets. Which of the following selections relating to these statements is true? a. Statements 1, 2, 3 and 5 are correct. b. Statements 1, 2 and 3 are correct. c. Statements 2, 3 and 4 are correct. d. All of the statements are correct.