P318 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? Creek Enterprises Common-Size Income Statement for the Year Ended December 31, 2021 Sales revenue ($35,000,000) 100.0% Less: Cost of goods sold 65.9 Gross profits 34.1% Less: Operating expenses Selling expense 12.7% General and administrative expenses 6.3 Lease expense 0.6 Depreciation expense 3.6 Total operating expense 23.2% 10.9% Operating profits Less: Interest expense 1.5 9.4% Net profits before taxes Less: Taxes (rate=21%) 2.0 7.4% Net profits after taxes 0.1 Less: Preferred stock dividends 7.3% Earnings available for common stockholders Problem 3-16: Creek Enterprises Income Statement for the Year Ended December 31, 2022 Sales revenue $30,000,000 Less: Cost of goods sold 21,000,000 Gross profits $ 9,000,000 Less: Operating expenses Selling expense $ 3,000,000 General and administrative expenses 1,800,000 Lease expense 200,000 Depreciation expense 1.000.000 Operating profits $ 3.000.000 Less: Interest expense 1,000,000 Net profits before taxes $ 2,000,000 Less: Taxes (rate=21%) 420,000 Net profits after taxes $ 1,580,000 Less: Preferred stock dividends 100.000 Earnings available for common stockholders $ 1,480,000