1 'PROBLEII-il 318 2 _ Commonsize statement analysis A commonsize income statement for Creek Enterprises' 2021 operations follows. Using the rm's 2022 income statement presented in Problem 3-16, develop the 2022 common-site 3 _I income statement and compare it with the 2021 common-size statement. which areas require further analysis and investigation? 4 5 Creek Enterprises Income Statement Creek Enterprises Common-Size Income Statement 6 for the Year Ended December 31, 2022 for the Year Ended December 31, 2021 7 _ Sales revenue 5 30,000,000 Sales revenue (535.000.0001 100.096 3 Less: Cost of goods sold 21,000,000 Less: Cost of goods sold 55,9 9 Gross prots 5 9,000,000 Gross prots 340196 10 Less: Operating expenses Less: Operating expenses 11 Selling expense 5 3,000,000 Selling expense 12 3'96 12 I General and administrative expenses 1,800,000 General and administrative expenses 6 3 13 Lease expense 200,000 Lease expense 0 6 14 Depreciation expense 1,000,000 Depreciation expense g 15 Operating PrDts s 3.000.000 Total operating expense 23.296 15 Less: Interest expense 1,000,000 Operating prots 10 9% 17 Net prots before taxes 5 2,000,000 Less: Interest expense Q 13 Less: Taxes [rate = 2196] 420,000 Net prots before taxes 3495 19 Net prots after taxes 5 1,580,000 Less: Taxes (rate = 21%] Q 20 Less: Preferred stock dividends 100,000 Net prots after taxes 7,495 21 Earnings availabie for common stockholders 5 1,430,000 Less: Preferred stock dividends Q 22 Earnings available for common stockholders 7.396 23