a. Use the percent-of-sales method to prepare a pro forma income statement for the year ended December 31, 2020. Complete e pro o ma ncome statement or the year ended ecember 3 2020 below: Round he percenta e sales o our de mal places an e pro on na income statement amounts to the nearest 1 Pro Forma Income Statement Metroline Manufacturing, Inc. for the Year Ended December 31, 2020 (percent-of-sales method) 1,530,000 771,576 545424 Sales ] | 50.43% Less: Cost of goods sold Gross profits 545424 425,937 425,937 39,000 386,937 (154775) 232,162 72,000 160,162 Gross profits 7.81 % Less: Operating expenses Operating profits Less: Interest expense Net profits before taxes Less: Taxes Net profits after taxes Less: Cash dividends To retained earnings Pro forma income statement The marketing department of Metroline Manufacturing estimates that its sales in 2020 will be $1.53 million. Interest expense is expected to remain unchanged at $39,000, and the firm plans to pay $72,000 in cash dvidends during 2020. Metroline Manufacturing's income statement for the year ended December 31, 2019, is given E along with a breakdown of the firm's cost of goods sold and operating expenses into their fixed and variable components Use the percent-of-sales method to prepare a pro forma income statement for the year ended December 31, 2020. b. Use fixed and variable cost data to develop a pro forma income statement for the year ended December 31, 2020. c. Compare and contrast the statements developed in parts a. and b. Which statement probably provides the better estimate of 2020 income Explain why (Click on the icon located on the top-right corner of the data tables below in order to copy its contents into a spreadsheet.) Metroline Manufacturing Income Statement for the Year Ended December 31, 2019 Metroline Manufacturing Breakdown of Costs and Expenses into Fixed and Variable Components for the Year Ended December 31, 2019 $1,396,000 917.000 $479,000 112,000 Sales revenue Less: Cost of goods sold Gross profits Less: Operating expenses Operating profits Less: Interest expense Net profits before taxes Less: Taxes (rate = 40%) Net profits after taxes Less: Cash dividends To retained earnings Cost of goods sold Fixed cost Variable cost $213,000 704,000 $917,000 $367,000 Total cost 39,000 Operating expenses $328,000 131,200 Fixed expenses Variable expenses $34,000 78,000 $112,000 $196,800 Totalexpenses 69,000 $127,800