Click the PDF icon below to download the eBook from the Online Library. Net assets are total assets less total liabilities. How an income statement is prepared and what it can tell you, The importance of transaction timing and how it influences the income statement totals, How to use accounting standards to help you define operating and non-operating expenses, How to use income statements to measure financial performance against expectations, How to compare income statements for different sized organizations. When performing a common-size analysis the profitability indicators you should look at are gross profit margin, operating profit margin, and net profit margin. 5