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LU(5 P3-18 Common-size statement analysis A common-size income statement for Creek Enterprises' 2021 operations follows. Using the firm's 2022 income statement presented in Problem 3-16,

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LU(5 P3-18 Common-size statement analysis A common-size income statement for Creek Enterprises' 2021 operations follows. Using the firm's 2022 income statement presented in Problem 3-16, develop the 2022 common-size income statement and compare it with the 2021 common-size statement. Which areas require further analysis and investigation? Depreciation expense 3.6 Total operating expense Operating profits Less: Interest expense Net profits before taxes Less: Taxes (( rate =21%)) Net profits after taxes Less: Preferred stock dividends 23.2% 10.9% 1.5 9.4% 2.0 7.4% 0.1 7.3%

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