Common-size statement analysis A common-size income statement for Creek Enterprises’ 2021 operations follows. Using the firm’s 2022 income statement, 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 Income Statementfor the Year Ended December 31, 2022Sales revenueLess: Cost of goods soldGross profitsLess: Operating expensesSelling expenseGeneral and administrative expensesLease expenseDepreciation expenseOperating profitsLess: Interest expenseNet profits before taxesLess: Taxes (rate = 21%)Net profits after taxesLess: Preferred stock dividendsEarnings available for common stockholders$30,000,00021,000,000$ 9,000,000$3,000,0001,800,000200,0001,000,000$3,000,0001,000,000$ 2,000,000420,000$ 1,580,000100,000$ 1,480,000 Creek Enterprises Common-Size Income Statementfor the Year Ended December 31, 2021Sales revenue ($35,000,000)Less: Cost of goods soldGross profitsLess: Operating expensesSelling expenseGeneral and administrative expensesLease expenseDepreciation expenseTotal operating expenseOperating profitsLess: Interest expenseNet profits before taxesLess: Taxes (rate = 21%)Net profits after taxesLess: Preferred stock dividendsEarnings available for common stockholders100.0%65.934.1%12.7%6.30.63.623.2%10.9%1.59.4%2.07.4%0.17.3%

Name: Common-size statement analysis A common-size income statement for Cree
Uploaded: 2024-03-20T06:33:21.000Z
Channel: Bartleby
Description: Common-size statement analysis A common-size income statement for Creek Enterprises’ 2021 operations follows. Using the firm’s 2022 income statement, develop the 2022 common-size income statement and compare it with the 2021 common-size statement. Wh