LG$(5)$ P$3-18$ Common$-$size statement analysis A common$-$size income

statement for Creek Enterprises' $2021$ operations follows. Using the firm's $2022$

income statement presented in Problem $3-16,$ develop the $2022$ common$-$size

income statement and compare it with the $2021$ common$-$size statement. Which

areas require further analysis and investigation?

Creek Enterprises Common$-$Size Income Statement for the Year Ended December

$31,2021$

Sales revenue $($$$35,000,000)$

Less: Cost of goods sold

Gross profits

Less: Operating expenses

Selling expense

General and administrative expenses

$6\mathrm{.}3$

Lease expense

$0\mathrm{.}6$

Depreciation expense

Total operating expense

Operating profits

Less: Interest expense

Net profits before taxes

Less: Taxes rate $=21\%$

Net profits after taxes

Less: Preferred stock dividends

Earnings available for common stockholders