(For Income Staement, click on the icon here in order to copy the contents of the data table below into a spreadsheet.) (For Breakdown of Costs and Expenses, click on the icon here in order to copy the contents of the data table below into a spreadsheet.) Metroline Manufacturing Income Statement for the Year Just Ended 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 Metroline Manufacturing Breakdown of Costs and Expenses into Fixed and Variable Components for the Year Just Ended Cost of goods sold Fixed cost $217,000 Variable cost 695,000 Total cost $912,000 $1,410,000 912,000 $498,000 120,000 $378,000 39,000 $339,000 135,600 $203,400 65,000 $138,400 Operating expenses Fixed expenses Variable expenses Total expenses $35,000 85,000 $120,000 Pro Forma Income Statement Metroline Manufacturing, Inc. for the Year Ended December 31, 2020 (percent-of-sales method) Sales $ Less: Cost of goods sold % Gross profits $ 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 Metroline Manufacturing, Inc. for the Year Ended December 31, 2020 (based on fixed and variable cost data) Sales $ Less: Cost of goods sold Fixed cost Variable cost % Gross profits $ Less: Operating expenses Fixed expense Variable expense % Operating profits $ Less: Interest expense Net profits before taxes $ Less: Taxes Net profits after taxes $ Tess: Cash dividends Pro forma income statement The marketing department of Metroline Manufacturing estimates that its sales next year will be $1.56 million. Interest expense is expected to remain unchanged at $39,000, and the firm plans to pay $73,000 in cash dividends. Metroline Manufacturing's income statement for the previous year is given , along with a breakdown of the firm's cost of goods sold and operating expenses into their fixed and variable components. a. Use the percent-of-sales method to prepare a pro forma income statement for next year. b. Use fixed and variable cost data to develop a pro forma income statement for next year. c. Compare and contrast the statements developed in parts a. and b. Which statement probably provides the better estimate of income? Explain why