On a common-size income statement, sales are expressed as what?

A common-size income statement is a financial statement that expresses each line item as a percentage of sales, making it easier to analyze and compare financial performance across different companies or time periods. In this format, sales serve as the base figure, and all other entries, such as cost of goods sold, operating expenses, and net income, are presented as a percentage of total sales revenue.

By expressing other items relative to sales, stakeholders can quickly assess how much of each dollar of sales goes towards various expenses and how much remains as profit. This method provides valuable insights into the company's operational efficiency and financial health without the influence of absolute numbers, which can vary significantly between businesses of different sizes. Thus, it is the most effective way to gain clarity on a company's performance in relation to its total revenue.

The other options do not accurately represent the common-size income statement format; they involve ratios that are not standard for this type of financial reporting.