Common-size statement analysis A common-size income statement for Creek Enterprises 2018 operations follows. Using the firm's 2019 income develop the 2019 common-size income statement and compare it to the 2018 statement. Which areas require further analysis and investigation?

emel 019 100.0 % 66.1 33.9 % (Click the icon here in order to copy the contents of the data table below into a spreadsheet) Creek Enterprises Income Statement for the Year Ended December 31, 2018 Sales revenue ($34,977,000) Less: Cost of goods sold Gross profits Less: Operating expenses Selling expense 13.2 % General and administrative expenses 6.3 Lease expense 0.3 3.7 Depreciation expense Total operating expense Operating profits Less. Interest expense Manfit hofanatican sold ens 23.5 10.4 % 1.7 7 trat 66.1 33.9 % 13.2 % 6.3 0.3 3.7 | Less: Cost of goods sold Gross profits Less: Operating expenses Selling expense General and administrative expenses Lease expense Depreciation expense Total operating expense Operating profits Less: Interest expense Net profits before taxes Less: Taxes (rate = 40%) Net profits after taxes Less: Preferred stock dividends Earnings available for common stockholders 23.5 10.4 % 1.7 8.7 % 3.5 5.2 % 0.2 5.0 % (Click the icon here in order to copy the contents of the data table below into a spreadsheet.) Creek Enterprises Income Statement for the Year Ended December 31, 2019 Sales revenue $30,049,000 LessCost of goods sold 20,981,000 Gross profits $9,068,000 Less: Operating expenses Selling expense $3,043,000 General and administrative expenses 1,848,000 Lease expense 185,000 Depreciation expense 998,000 Total operating expense 6,074,000 Operating profits $2,994,000 Less: Interest expense 966,000 Net profits before taxes $2,028,000 Less: Taxes (rate = 40%) 811.200 $30,049,000 20,981,000 $9,068,000 $3,043,000 1,848,000 185,000 998,000 Sales revenue Less: Cost of goods sold Gross profits Less: Operating expenses Selling expense General and administrative expenses Lease expense Depreciation expense Total operating expense Operating profits Less: Interest expense Net profits before taxes Less: Taxes (rate = 40%) Net profits after taxes Less: Preferred stock dividends Earnings available for common stockholders 6,074,000 $2,994.000 966,000 $2,028,000 811,200 $1,216,800 52,000 $1,164,800 Common-Size Income Statement for the Years Ended December 31, 2018 and December 2019 2019 2018 100.0% 100.0 % Sales revenue 69.8 66.1 30.21% 33.9% Less: Cost of goods sold Gross profits Less: Operating expenses Seling expense General and administrative expenses 13.2% 63 Lease expense 0.3 37 Depreciation expense Common-size staternent analysis A common-size income statement for Creek Enterprises 2018 operations follows EE.Usin develop the 2019 common-size income statement and compare it to the 2018statement which areas require further analys % 13.2 % 6.3 0.3 3.7 235 10.4 % Selling expense General and administrative expenses Lease expense Depreciation expense Total operating expense Operating profits Less: Interest expense Net profits before taxes Less: Taxes (rate = 40%) Net profits after taxes Less Preferred stock dividends 17 8.7% 3.5 90 52% 02 Common-size statement analysis A common-size income statement for Creek Enterprises 2018 operations follows Using the firm's develop the 2019 common-size income statement and compare it to the 2018statement which areas require further analysis and inve UJ du UVA 0.3 3.7 23.5 % 10.4% 1.7 Lease expense Depreciation expense Total operating expense Operating profits Less Interest expense Net profits before taxes Less Taxes (rate = 40%) Net profits after taxes Less Preferred stock dividends % 8.7% 35 5.2% 02 50% Earnings available for common stockholders