Common-size financial statements include common- size balance sheets and common-size income statements. A common-size balance sheet expresses all balance sheet accounts as percentages of total assets. A common-size income statement expresses all income statement items as percentages of gross sales. Common-size statements give an analyst insight into the structure of a firm’s financial statements at a particular point in time or during a particular period. They also indicate the percentage of sales consumed by production costs or interest expenses, the proportion of assets that are liquid, or the proportion of liabilities that are short-term obligations.