Common-size statement analysis A common-size income statement for Creek Enterprises 2018 operations follows Using the firm's 2019 income statement develop the 2019 common-size income statement and compare it to the 2018statement. Which areas require further analysis and investigation? 2019 2018 Sales revenue % 100.0 % Less: Cost of goods sold 684 Gross proft 33.6 Less: Operating expenses Selling expense 126% General and administrative expenses 64 Lease expense 0.7 Depreciation expense 38 Total operating expense 23.5 Operating profits 10.1 Less Interest expense 18 Net profits before taxes 8.3% Less: Taxes (40%) 33 Net profits after taxes 5.0 % Less: Preferred stock dividends 0.2 Earnings available for common stockholders 4.8% Enter any number in the edit fields and then continue to the next question Less: Preferred stock dividends 02 Earnings available for common stockholders Provide your evaluation based on the common size income statements: (Select all the choices that apply.) A Sales have declined and cost of goods sold has increased as a percentage of sales probably due to a loss of productive efficiency B. Operating expenses have decreased as a percentage of sales: this appears favorable unless this decine has contributed toward the fall in sales. C. The level of interest as a percentage of sales has increased significantly, this suggests that the firm has too much debt. D. Seling expense has increased due to the increase in cost of goods sold. O E. Further analysis should be directed at the increased cost of goods sold and the high debt level Enter any number in the edit fields and then continue to the next question 100.0 % 66.4 33.6 % (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 ($35,038,000) Less: Cost of goods sold Gross profits Less: Operating expenses Selling expense 12.6 % General and administrative expenses 6.4 Lease expense 0.7 Depreciation expense 3.8 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 10.1 % 1.8 8.3 % 3.3 5.0 % 0.2 4.8 % Creek Enterprises Income Statement for the Year Ended December 31, 2019 Sales revenue $29,959,000 Less: Cost of goods sold 21,049,000 Gross profits $8,910,000 Less: Operating expenses Selling expense $3,015,000 General and administrative expenses 1,832,000 Lease expense 250,000 Depreciation expense 1,036,000 Total operating expense 6,133,000 Operating profits $2,777,000 Less: Interest expense 1,008,000 Net profits before taxes $1,769,000 Less: Taxes (rate = 40%) 707,600 Net profits after taxes $1,061,400 Less: Preferred stock dividends 61,000 Earnings available for common stockholders $1,000,400