=+c. As the financial manager, which of the two pro forma statements would you regard as more accurate? Explain.

Bells Manufacturing Income Statement for the Year Ended December 31, 2015 Sales revenue $1,800,000 Less: Cost of goods sold 1,100,000 Gross profits $ 700,000 Less: Operating expenses 450,000 Operating profits $ 250,000 Less: Interest expense 24,500 Net profits before taxes $ 225,500 Less: Taxes (rate = 40%) 90,200 Net profits after taxes $ 135,000 Less: Cash dividends 85,000 To retained earnings $ 50,300 Bell Manufacturing Breakdown of Costs and Expenses into Fixed and Variable Components for the Year Ended December 31, 2015 Cost of goods sold Fixed cost $ 750,000 Variable cost 350,000 Total costs $1,100,000 Operating expenses Fixed expenses $155,000 Variable expenses 295,000 Total expenses $450,000