P4-16 (similar to) Pro forma income statement The marketing department of Metroline Manufacturing estimates that its sales in 2020 will be $1 remain unchanged at $32,000, and the firm plans to pay $66,000 in cash 31, 2019, is given along with a breakdown of the firm's cost Question Help .68 million. Interest expense is expected to dividends during 2020. Metroline Manufacturing's income statement for the year ended December 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 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 statoment for the yoar ended Docember 31, 2020 below: (Round the percentage of sales to tour decimal places and the pro torma ncome statement amounts to the nearest dollar.) Pro Forma Income Statement Metroline Manufacturing, Inc. 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 $1,406,000 912,000 $494,000 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%) Cost of goods sold Fixed cost rma 123,000 Variable cost $371,000 Total cos $200,000 712,000 $912,000 32,000 Operating expenses 9,000 35,600 Fixed expenses Variable expenses $33,000 90,000 $33 Print Done