complete the pro forma income statement
Sma to) Question He Pro forma income statement The marketing department of Metroline Manufacturing estimates that its sales in 2020 will be $1.62 million. Interest expense is expected to remain unchanged at $35,000, and the firm plans to pay $75,000 in cash dividends during 2020. Metroline Manufacturing's income statement for the ended December 31, 2019, is given . along with a breakdown of the firm's cost of goods sold and operating expenses into their fixed and variable componer a. 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 a. Use the percent-of-sales method to prepare a pro forma income statement for the year ended December 31, 2020. Complete the pro forma income statement for the year ended December 31, 2020 below (Round the percentage of sales to four decimal places and the pro form income statement amounts to the nearest dollar.) (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 Sales revenue $1,409,000 905,000 Cost of goods sold 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 $215,000 $504,000 121,000 $383,000 Fixed cost Variable cost Total cost 690,000 $905,000 35,000 Operating expenses Fixed expenses Variable expenses $35,000 86,000 $348,000 139 200 Total expenses $121,000 $208,800 66,000 $142,800 Print Done ved. I Terms of Use Privacy Policy I Permissions rights me Compornerna 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 Complete the pro forma income statement for the year ended December 31, 2020 below: (Round the percentage of sales to four decimal places and the pro forma income statement amounts to the nearest dollar) Pro Forma Income Statement Metroline Manufacturing, Inc. for the Year Ended December 31, 2020 (based on fixed and variable cost data) Sales Less: Cost of goods sold EA DT 31a ipably provides the Sales Less: Cost of goods sold Fixed cost o% Variable cost Gross profits Less: Operating expenses Fixed expense % Variable expense Fixed expense Variable expense % Operating profits Less: Interest expense Net profits before taxes Less: Taxes Net profits after taxes Less: Cash dividends phobabiy provides the Variable expense % Operating profits $ Less: Interest expense Net profits before taxes $ Less: Taxes Net profits after taxes Less: Cash dividends To retained earnings
