P4-15 Pro forma income statement The marketing department of Metroline Manufactur ing estimates that its sales in 2016 will be $1.5 million. Interest expense is expected to remain unchanged at $35,000, and the firm plans to pay $70,000 in cash divi dends during 2016. Metroline Manufacturings income statement for the year ended December 31, 2015, and a breakdown of the firms cost of goods sold and operating expenses into their fixed and variable components are given below. 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 state ment probably provides the better estimate of 2016 income? Explain why. Metroline Manufacturing Metroline Manufacturing Breakdown of Costs and Expenses Income Statement for the Year Ended December 31, 2015 Sales revenue $1,400,000 Cost of goods sold Less: Cost of goods sold 910,000 Fixed cost $210,000 Gross profits $ 490,000 Variable cost 700,000 Less: Operating expenses 120,000 Total costs $910,000 Operating profits $ 370,000 Operating expenses Less: Interest expense 35,000 Fixed expenses $ 36,000 Net profits before taxes $ 335,000 Variable expenses 84,000 134,000 Less: Taxes (rate = 40%) Total expenses $120,000 Net profits after taxes $ 201,000 Less: Cash dividends 66,000 To retained earnings $ 135,000 ***Please provide response in excel formatting*** Thank you.