Common-size statement analysis A common-size 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 2018 statement. Which areas require further analysis and investigation? Complete the common-size income statement for the year ending December 31, 2019 and compare it 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 2019 2019 2018 100.0 % 1000% 65.5 70.1 29.9 % 34.5 % Sales revenue Less: Cost of goods sold Gross profits Less: Operating expenses Selling expense General and administrative expenses Lease expense Depreciation expense Total operating expense 12.7% 6.4 ICON 06 3.7 23.4 Enter any number in the edit fields and then click Check Answer 70.1 65.5 29.9 % 34 5% % 12.7 % 6.4 0.6 Less: Cost of goods sold Gross profits Less: Operating expenses Selling expense General and administrative expenses Lease expense Depreciation expense Total operating expense Operating profits Less: Interest expense Net profits before taxes Less: Taxes (rate=40%) Net profits after taxes Less: Preferred stock dividends 3.7 23.4 % 11.1% 1.7 % 94% ICO 3.8 % 5.6 % 0.2 Earnings available for common stockholders % 5.4 % Enter any number in the edit fields and then click Check Answer 2 to) a Data Table X ng ex 100.0 % 65.5 34.5 % (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 ($35,050,000) Less: Cost of goods sold Gross profits Less: Operating expenses Selling expense 12.7 % General and administrative expenses 6.4 Lease expense 0.6 Depreciation expense 3.7 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 23.4 11.1 % 1.7 9.4 % 3.8 5.6 % 0.2 5.4 % end mon dit Print Done Clear All Chec ses ative se Creek Enterprises Income Statement for the Year Ended December 31, 2019 Sales revenue $30,039,000 Less: Cost of goods sold 21,049,000 Gross profits $8,990,000 Less: Operating expenses Selling expense $3,041,000 General and administrative expenses 1,841,000 Lease expense 226,000 Depreciation expense 1,000,000 Total operating expense 6,108,000 Operating profits $2,882,000 Less: Interest expense 1,032,000 Net profits before taxes $1,850,000 Less: Taxes (rate = 40%) 740,000 Net profits after taxes $1,110,000 Less: Preferred stock dividends 132,000 Earnings available for common stockholders $978,000 es 0%)
