A common-size income statement for Creek Enterprises' 2014 operations follows AA picture Using the firm's 2015 income statement BB picture develop the 2015 common-size income statement and compare it to the 2014 statement. Which areas require further analysis and investigation?

Complete the common-size income statement for the year ending December 31, 2015 and compare it to the common-size income statement for the year ending December 2014: (Round to one decimalplace.)

Creek Enterprises
Common-Size Income Statement
for the Years Ended December 31, 2014 and December 2015
	2015				2014
Sales revenue				%			100.0	%
Less: Cost of goods sold							66.0
Gross profits				%			34.0	%
Less: Operating expenses
Selling expense		%			12.2	%
General and administrative expenses					6.1
Lease expense					0.5
Depreciation expense					3.6
Total operating expense							22.4
Operating profits				%			11.6	%
Less: Interest expense							1.7
Net profits before taxes				%			9.9	%
Less: Taxes (rate = 40%)							4.0
Net profits after taxes				%			5.9	%
Less: Preferred stock dividends							0.2
Earnings available for common stockholders				%			5.7	%

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Creek Enterprises Income Statement for the Year Ended December 31, 2014 Sales revenue ($34,976,000) Less: Cost of goods sold Gross profits Less: Operating expenses 100.0 % 66.0 34.0 % 12.2 % Selling expense General and administrative expenses Lease expense Depreciation expense 0.5 3.6 lotal operating expense 22.4 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 11.6 % 9.9 % 4.0 5.9% 0.2 57 %