Question number 18 can I get the answer with full step thnx

P3-18 4 Debt analysis Springfield Bank is evaluating Creek Enterprises, which has requested a $4,000,000 loan, to assess the firm's financial leverage and financial risk. On the basis of the debt ratios for Creek, along with the industry averages (see the top of the next page) and Creek's recent financial statements (following), evaluate and recommend appropriate action on the loan request Sales revenue Less: Cost of goods sold 31, 2015 $30,000,000 21,000,000 Gross profits Less: Operating expenses Selling expense General and administrative expenses Lease expense Depreciation expense $ 3,000,000 1,800,000 200,000 Total operating expense 6,000,000 s 3,000,000 Less: Interest expense Less: Taxes (rate = 40%) Less: Preferred stock dividends Operating profits Net profits before taxes Net profits after taxes Earnings available for common stockholders s 2,000,000 800,000 S 1,200,000 100,0000 S 1,100,000