1000 Common-size statement analysis a common-site income statement for Creek Enterprises 2018 operations follows Using the firm's 2019 income statement develop the 2019 common-size income statement and compare it to the 2018statement. Which was require further analysis and investigation? Complete the common size Income statement for the year ending December 31, 2019 and compare to the common size income statement for the year ending December 2018: (Round to one decimal place) Creek Enterprises Common-Size Income Statement for the Years Ended December 31, 2018 and December 2013 2010 2018 Sales revenue Less Cost of goods sold 064 Gross profits 336 Less: Operwing experts Selling expense 12.2% General and strative expenses 63 Lease expense 05 35 Depreciation expense Totalpring expense Operating profil 10 Les resten 10.1 Nes before Les Taxes 40 Ewer any number in the ends and the continue to the next questo eds Tequile further analysis and investigation? Selling expense % 12.2 % General and administrative expenses 6.3 Lease expense 0.5 Depreciation expense 3.5 Total operating expense 22.5 Operating profits % 11.1 % Less: Interest expense 1.0 Net profits before taxes % 10.1 % Less: Taxes (rate = 40%) Net profits after taxes 6.1 % Less: Preferred stock dividends 0.2 Earnings available for common stockholders 5.9% Provide your evaluation based on the common-size income statements: (Select all the choices that apply.) A. Operating expenses have decreased as a percentage of sales; this appears favorable unless this decline has contributed toward the fall in sales. B. The level of interest as a percentage of sales has increased significantly, this suggests that the firm has too much debt. C. Sales have declined and cost of goods sold has increased as a percentage of sales, probably due to a loss of productive efficiency. D. Selling expense has increased due to the increase in cost of goods sold. E. Further analysis should be directed at the increased cost of goods sold and the high debt level % OOOO Enter any number in the edit fields and then continue to the next question Data Table 100.0 % 66.4 33.6 % (Click the icon here in order to copy the contents of the data table below into a spreadsheet.) Creek Enterprises Income Statement for the Year Ended December 31, 2018 Sales revenue ($35,043,000) Less: Cost of goods sold Gross profits Less: Operating expenses Selling expense 12.2 % General and administrative expenses 6.3 Lease expense 0.5 Depreciation expense 3.5 Total operating expense Operating profits Less: Interest expense Net profits before taxes Less: Taxes (rate = 40%) Net profits after taxes Less: Preferred stock dividends. Earnings available for common stockholders 2 size 22.5 11.1 % 1.0 10.1 % 4.0 6.1 % 0.2 5.9 % sale sold heid their Print Done i Data Table (Click the icon here in order to copy the contents of the data table below into a spreadsheet.) Creek Enterprises Income Statement for the Year Ended December 31, 2019 Sales revenue $29,983,000 Less: Cost of goods sold 21,015,000 Gross profits $8.968,000 Less: Operating expenses Selling expense $2,982,000 General and administrative expenses 1,777,000 Lease expense 193,000 Depreciation expense 999,000 Total operating expense 5,951,000 Operating profits $3,017,000 Less: Interest expense 963,000 Net profits before taxes $2,054,000 Less: Taxes (rate = 40%) 821,600 Net profits after taxes $1,232,400 Less: Preferred stock dividends 89,000 Earnings available for common stockholders $1,143,400 er es sha ncr Print Done inci