Common size income statement doubt

CFA Level I
#1

Hey guys ,

I am going therough reading 28 atm , it talks about the common size income statement where every item is divided by sales .

Now my question is , is that sales like the total sales made in the year or is it sales-sales returns .

Regards,

HedgeFudge

#2

Generally it’s _ net _ sales: sales net of returns and allowances.