0 Data Table (Click on the icon located on the top-right corner of the data table below in order to copy its contents into a spreadsheet.) Creek Enterprises Income Statement for the Year Ended December 31, 2018 Sales revenue ($35,033,000) 100.0 % Less: Cost of goods sold 65.7 Gross profits 34.3 % Less: Operating expenses Selling expense 12.8 % General and administrative expenses Lease expense Depreciation expense 3.6 Total operating expense 23.1 Operating profits 11.2 % Less: Interest expense 1.1 Net profits before taxes 10.1 % Less: Taxes (rate=21%) Net profits after taxes 8.0 % Less: Preferred stock dividends 0.2 Earnings available for common stockholders 7.8 % Creek Enterprises Income Statement for the Year Ended December 31, 2019 Sales revenue $29,983,000 Less: Cost of goods sold 20,956,000 Gross profits $9,027,000 Less: Operating expenses Selling expense $3,008,000 General and administrative expenses 1,775,000 Lease expense 198,000 Depreciation expense 991,000 Total operating expense 5,972,000 Operating profits $3,055,000 Less: Interest expense 960,000 Net profits before taxes $2,095,000 Less: Taxes (rate = 21%) 439,950 Net profits after taxes $1,655,050 Less: Preferred stock dividends 60,000 Earnings available for common stockholders $1,595,050 Complete the common-size income statement for the year ending December 31, 2019 and compare it to the common-size income statement for the year ending December 2018: (Round to one decimal place.) Creek Enterprises Common-Size Income Statement for the Years Ended December 31, 2018 and December 2019 2019 2018 100.0 % 65.7 34.3 % Sales revenue Less: Cost of goods sold Gross profits Less: Operating expenses Selling expense General and administrative expenses 12.8 % 6.1 Lease expense 0.6 3.6 23.1 Depreciation expense Total operating expense Operating profits Less: Interest expense Net profits before taxes Less: Taxes (rate = 21%) Net profits after taxes 11.2 % 1.1 10.1 % 2.1 Less: Preferred stock dividends 8.0 % 0.2 7.8 % Earnings available for common stockholders Provide your evaluation based on the common-size income statements: (Select all the choices that apply.) D A. Selling expense has increased due to the increase in cost of goods sold. OB. Operating expenses have decreased as a percentage of sales; this appears favorable unless this decline has contributed toward the fall in sales. C. Sales have declined and cost of goods sold has increased as a percentage of sales, probably due to a loss of productive efficiency. DD. The level of interest as a percentage of sales has increased significantly; this suggests that the firm has too much debt. E. Further analysis should be directed at the increased cost of goods sold and the high debt level