Homework: Chapter 4 Homework Score: 0 of 1 pt P4-15 (similar to) Save 50f 6 (3 complete) Hw Score: 29.17%, 1.75 of 6 pts Question Help * Pro forma income statement The marketing department of Metroline Manufacturing estimates that its sales in 2016 will be $1.51 milion. Interest expense is expected to remain unchanged at $35,000, and the firm plans to pay $74,000 in cash dividends during 2016. Metroline Manufacturing's income statement for the year ended December 31, 2015, is given EB. along with a breakdown of the firm's cost of goods sold and operating expenses into their fxed and variable a. Use the percent-of-sales method to prepare a pro forma income statement for the year ended December 31, 2016 b. Use fixed and variable cost data to develop a pro forma income statement for the year ended December 31, 2016 c. Compare and contrast the statements developed in parts a. and b. Which statement probably provides the better estimate of 2016 income? Explain why. a. Use the percent-of-sales method to prepare a pro forma income statement for the year ended December 31, 2016 Complete the pro forma income statement for the year ended December 31.2016 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, 2016 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