Using the firm's 2019 income statement develop the 2019 common-size income 6..1 Common-size statement analysis A common-size income statement for Creek Enterprises 2018 operations follows statement and compare it to the 2018 statement. Which areas require further analysis and investigation? 2019 2018 Sales revenue 100 100.0 % Less: Cost of goods sold Gross profits 33.3 33.9% Less: Operating expenses Selling expense 123 % General and administrative expenses 6.3 Lease expense 0.4 3.5 Depreciation expense 225 Total operating expense 11.4 % Operating profits 11.4 % 1.2 102% Operating profits Less: Interest expense Net profits before taxes Less: Taxes (rate=21%) Net profits after taxes Less: Preferred stock dividends 8.1 % 0.2 Earnings available for common stockholders 7.9 Enter any number in the edit fields and then click Check Answer $30,036,000 20959000 $9,077,000 Creek Enterprises Income Statement for the Year Ended December 31, 2019 2 Sales revenue 3 Less: Cost of goods sold Gross profits 5 Less: Operating expenses 5 Selling expense General and administrative expenses Lease expense Depreciation expense Total operating expense 1 Operating profits 2 Less: Interest expense 3 Net profits before taxes 4 Less: Taxes (rate=21%) 5 Net profits after taxes 5 Less: Preferred stock dividends 7 Earnings available for common stockholders $3,029,000 1810000 170000 986000 5995000 $3,082,000 1017000 $2,065,000 433650 $1,631,350 78000 $1,553,350 100 % 66.1 33.9% 1 Creek Enterprises Income Statement for the Year Ended December 31, 2018 2 Sales revenue ($35,020,000) 3 Less: Cost of goods sold 4 Gross profits 5 Less: Operating expenses 6 Selling expense 7 General and administrative expenses 8 Lease expense 9 Depreciation expense 10 Total operating expense 11 Operating profits 12 Less: Interest expense 13 Net profits before taxes 14 Less: Taxes (rate=21%) 15 Net profits after taxes 16 Less: Preferred stock dividends 17 Earnings available for common stockholders 12.3 % 6.3 0.4 3.5 22.5 11.4 % 1.2 10.2 % 2.1 8.1 % 0.2 7.9 %