10. Common-size financial statements A main element of financial statement analysis is the use of common-size financial statements, also called "vertical analysis, A common-size balance sheet divides each account's value by the value of total assets, while a common-size income statement divides each entry by net sales revenue. Common-size balance sheets immediately show how a firm's assets, liabilities, and equity are distributed. Common-size income statements give-a quick snapshot of how various expenses and types of income relate to sales revenue. The following common-size statements show that total liabilities are 51.2% of total assets, while long-term debt is 36.7% of total assets, in your finance course, you will learn the significance of these relationships. Complete the missing entries in the following common-size statements: Net fixed assets Total assets INCOME STATEMENT (Thousands of dollars) Total revenues - Cost of qoods sold - Operating expenses - Research 8 development expense - Depreciation and amortization expense Operating income (EBIT) - Interest expense Taxable income A (I) c D E