Common-size statement analysis Acommon-stre income statement for Creek Enterprises 2018 operations follows statement and compare it to the 2018 statement which areas require further analysis and investigation? Using the firm's 2019 income statement develop the 2019 common se income General and administrative expenses Los expense Depreciation expense Total operating expense Operating profits Less Interest expense Net profits before taxes Loss Taxes (rate=219) Net profits after taxes Less: Preferred stock dividends Eamings available for common stockholders 6.0 % Provide your evaluation based on the common size income statements (Select all the choices that apply) A Operating expenses have decreased as a percentage of sales, this appears favorable unless this decline has contributed toward the fal in sales B. The level of interest as a percentage of sales has increased significantly, this suggests that the firm has too much debt. C. Selling expense has increased due to the increase in cost of goods sold D. Sales have declined and cost of goods sold has increased as a percentage of sales probably due to a loss of productive efficiency E. Further analysis should be directed at the increased cost of goods sold and the high debt level. Creek Enterprises Income Statement for the Year Ended December 31, 2018 Sales revenue ($35,009,000) 100.0 % Less: Cost of goods sold 66.4 Gross profits 33.6 % Less: Operating expenses Selling expense 13.3 % General and administrative expenses 6.5 Lease expense 0.6 Depreciation expense 3.8 Total operating expense 24.2 Operating profits 9.4 % Less: Interest expense 1.6 Net profits before taxes 7.8 % Less: Taxes (rate=21%) 1.6 Net profits after taxes 6.2 % Less: Preferred stock dividends 0.2 Earnings available for common stockholders 6.0 % ders mmon-size inca sed as a perce age of sales ha Je to the increa Creek Enterprises Income Statement for the Year Ended December 31, 2019 Sales revenue $30,020,000 Less: Cost of goods sold 21,034,000 Gross profits $8,986,000 Less: Operating expenses Selling expense $3,049,000 General and administrative expenses 1,823,000 Lease expense 250,000 Depreciation expense 1,008,000 Total operating expense 6,130,000 Operating profits $2,856,000 Less: Interest expense 1,010,000 Net profits before taxes $1,846,000 Less: Taxes (rate=21%) 387,660 Net profits after taxes $1,458,340 Less: Preferred stock dividends 106,000 Earnings available for common stockholders $1,352,340 n-size i as a pe of sales the ind sold