Homework: Homework Set 4 Question 7, P4-15 (book... Part 1 of 3 HW Score: 19.17%, 9.58 of 50 points Points: 0 of 2 Save Pro forma income statement the marketing department of Metroline Manufacturing estimates that its sales in 2016 will be $1.50 million. Interest expense is expected to remain unchanged at $35,000, and the firm plans to pay $70,000 in Cash dividencs during 2016. Metroline Manufacturing's income statement for the year ended December 31, 2015, 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 pra forma income statement for the year ended December 31, 2016. b. Use lixed and variable cost dela lo develop a pro forma incuina salernenit for the year ended December 31, 2016. c. Compare and contrast the statements developed in parts and b. Which statement probably provides the better estimate of 2016 income? Explain why a. Use the cercent-of-sales method to prepare a profoma income statement for the year ended December 31, 2016. Complete the proforma income statement for the year ended December 31, 2016 bala: (Round the percentage of sales to four decimal places and the proforma income statement amounts to the nearest dollar) - X Data table (Click on the icon located on the top-right comer of the data tables bekw in order to copy its contents into a spreadsheet Pro Forma Income Statement Metroline Manufacturing, Inc. for the Year Ended December 31, 2016 (percent-of-sales method) Sales S Lees Cost of goods solo Gruss profils S Lees Operating expenses Operating profits s Lees. Interest expense . Net profits before taxes S Less Taxes Net profits after taxes S Lees: Cash dividunds 38 Metroline Manufacturing Income Statement for the Year Ended December 31, 2015 Sales revenue $1,400,000 Less: Cast of goods sold 910,000 Groen profits $490,000 Less: Operating expenses 120,000 Operating profits S370,000 Less. Interest expense 35,000 Net profits before taxes $325,000 Lesa: Taxes (rate=40%) 134,000 Nel profils aller Laxes 5201,000 Less. Cash dividends 68,000 To retained earnings $139,000 Metroline Manufacturing Breakdown of Costs and Expenses Into Fixed and Variable Components for the Year Ended December 31, 2015 Cost of goods sold Fixed cost $210,000 Variable cost 700.000 Totalcoat $210,000 Aparating expensas Far axpenses $30,000 Variable expenses 84,000 Total expenses $120,000 To retained eaminge S s Print Done