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. Using the firms 2019 income statement develop the 2019 common-size income statement and compare it to the Common-size statCommon-size statement analysis A common-size income statement for Creek Enterprises 2018 operations follows Using the firms

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Creek Enterprises
Common-Size Income Statement
for the Years Ended December 31, 2018 and December 2019
2019 2018
Sales revenue 100.0% 100.0%
Less: Cost of goods sold 69.9% 65.5%
Gross profits 30.1% 34.5%
Less: Operating expenses
Selling expense 10.1% 12.90%
General and administrative expenses 5.9 6.1
Lease expense 0.8 0.7
Depreciation expense 3.3 3.6
Total operating expense 20.1 23.3
Operating profits 10.0% 11.2%
Less: Interest expense 3.5 1.9
Net profits before taxes 6.6% 9.3%
Less: Taxes 1.4 2.0
Net profits after taxes 5.2% 7.3%
Less: Preferred stock dividends 0.3 0.2
Earnings available for common stockholders 4.9% 7.1%

Note: There is a slight difference in the net profits before taxes due to rounding off. Subsequent percentages are also affected due to the same. Kindly fill in appropriately.

The cost of goods sold and interest expense shows significant change from 2018 and needs to be analyzed and investigated.

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