Common-size statement analysis A common-size income statement for Creek Enterprises' 2014 operations follows Using the firm's 2015 income statement develop the 2015 common-size income statement and compare it to the 2014 statement. Which areas require further analysis and investigation? Complete the common-size income statement for the year ending December 31, 2015 and compare it to the common-size income statement for the year ending December 2014: (Round to one decimal place.) Creek Enterprises Creek Enterprises Common-Size Income Statement for the Years Ended December 31, 2014 and December 2015 2015 % 2014 Sales revenue 100.0 % 86.3 96 33.7% 96 12.7 % 6.4 0.5 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 3.5 23.1 96 10.6 % 1.8 9.0 % 3.6 96 5.496 Less: Preferred stock dividends 0.2 96 Earnings available for common stockholders 5.2 % Creek Enterprises Income Statement for the Year Ended December 31, 2014 Sales revenue ($35,017,000) 100.0 % Less: Cost of goods sold 66.3 Gross profits 33.7 % Less: Operating expenses Selling expense 12.7 % General and administrative expenses 6.4 Lease expense 0.5 Depreciation expense 3.5 Total operating expense 23.1 Operating profits 10.6 % Less: Interest expense 1.6 Net profits before taxes 9.0 % Less: Taxes (rate=40%) 3.6 Net profits after taxes 5.4 % Less: Preferred stock dividends 0.2 Earnings available for common stockholders 5.2 % Creek Enterprises Income Statement for the Year Ended December 31, 2015 Sales revenue $29,950,000 Less: Cost of goods sold 20,994,000 Gross profits $8,956,000 Less: Operating expenses Selling expense $3,011,000 General and administrative expenses 1,839,000 Lease expense 169,000 Depreciation expense 959,000 Total operating expense 5,978,000 Operating profits $2,978,000 Less: Interest expense 1,008,000 Net profits before taxes $1,970,000 Less: Taxes (rate = 40%) 788,000 Net profits after taxes $1,182,000 Less: Preferred stock dividends 78,000 Earnings available for common stockholders $1,104,000