-G 5 13-19 Profitability analysis In early 2013, Pepsi reported revenues of $65.64 billion with earn ings available for common stockholders of $6.12 billion. Pepsi's total assets at the time were $74.64 billion. Meanwhile, one of Pepsi's competitors, Dr. Pepper, reported sales of $6.01 billion with earnings of $0.63 billion. Dr. Pepper had assets of $8.87 billion. Which company was more profitable? Why is it hard to get a clear answer to this question? P3-20 Common-size statement analysis A common-size income statement for Creek Enter- prises' 2014 operations follows. Using the firm's 2015 incorre statement presented in Problem 3-18, develop the 2015 common-size income statement and compare it with the 2014 statement. Which areas require futher analysis and investigation? 25 * erkinlaste om on-Stones felicidade Deus (202 Sales revenue ($35,000,000). 100.0% Less: Cost of goods sold .659 Gross profits 34.1% Operating expertise Selling pense 12.7% General and administrative etpenses Lease a pense 0.6 Depreciation expense Total Operating expense Operating profits Less: Interest expense A. 1:5 Net profits before taxes 9.4% Less Taxes (gate -40%) 3.8 Na profils after taxes 5.6% Less: Preferred stock dividends 0.1 Earnings available for common stockholders 55% -G 5 13-19 Profitability analysis In early 2013, Pepsi reported revenues of $65.64 billion with earn ings available for common stockholders of $6.12 billion. Pepsi's total assets at the time were $74.64 billion. Meanwhile, one of Pepsi's competitors, Dr. Pepper, reported sales of $6.01 billion with earnings of $0.63 billion. Dr. Pepper had assets of $8.87 billion. Which company was more profitable? Why is it hard to get a clear answer to this question? P3-20 Common-size statement analysis A common-size income statement for Creek Enter- prises' 2014 operations follows. Using the firm's 2015 incorre statement presented in Problem 3-18, develop the 2015 common-size income statement and compare it with the 2014 statement. Which areas require futher analysis and investigation? 25 * erkinlaste om on-Stones felicidade Deus (202 Sales revenue ($35,000,000). 100.0% Less: Cost of goods sold .659 Gross profits 34.1% Operating expertise Selling pense 12.7% General and administrative etpenses Lease a pense 0.6 Depreciation expense Total Operating expense Operating profits Less: Interest expense A. 1:5 Net profits before taxes 9.4% Less Taxes (gate -40%) 3.8 Na profils after taxes 5.6% Less: Preferred stock dividends 0.1 Earnings available for common stockholders 55%