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Creek Enterprises Income Statement for the Year Ended December 31, 2018 Sales revenue ($34,963,000) Less Cost of goods sold Creek Enterprises Income Statement for the Year Ended December 31, 2019 Sales revenue Less: Cost of goods sold Gross profits Less: Operating expenses 1000 % $29,980,000 20,995,000 $8,985,000 338 % Less: Operating expenses Seling experse General and administrative expenses 13.3 % $3.041,000 1,774,000 193,000 979,000 Seling expense General and administrative expenses 04 3.6 Lease expense Total operating expense 235 Depreciation expense Total operating expense Operating profits Less: Interest expense Net prolts before taxes Less: Operaing profits Less: Interest expense Net profits before taxes Less Taxes (rate .21%) 5,987,000 $2,998,000 997,000 89% Taxes (rate .21%) 420,210 $1,580,790 1,000 $1,509,790 0.2 Less: Preferred stock dividends Eamings avalable for common stockholders Less: Preferred stock dividends Earnings available for common stockholders

Answer 1

	Common Size Income statement
Sales revenue		100.0%
Less: Cost of goods sold		70.0%
Gross Profits		30.0%
Less:Operating expenses
Selling expense	10.1%
General and administrative expenses	5.9%
Lease	0.6%
Depreciation	3.3%
Total operating expenses		20.0%
Operating Profits		10.0%
Less: Interest		3.3%
Net profits before taxes		6.7%
Less taxes		1.4%
PAT		5.3%
Less: Preferred stock dividends		0.2%
Earnings available for equity shareholders		5.0%

WORKINGS