3 pts is a technique for analyzing the relationships between the items on an income statement, balance sheet, or statement of cash flows by expressing the components as percentages. This method often referred to as "common sizing" of financial statements is applied to the income statement by assigning Net Sales as 100%, and the accompanying numbers compared to Net Sales in a percentage format, for a balance sheet Total Assets is assigned, as well as Total Liabilities and Stockholders' Equity 100%, with all other accounts as a comparison. This technique will not work for small, immaterial frauds