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PLEASE HELP!!! Pro forma income statement The marketing department of Metroline Manufacturing estimates that its sales in 2020 will be $1.69 million. Interest expense is
PLEASE HELP!!!
Pro forma income statement The marketing department of Metroline Manufacturing estimates that its sales in 2020 will be $1.69 million. Interest expense is expected to remain unchanged at $39,000, and the firm plans to pay S70,000 in cash dividends during 2020. Metroline Manufacturing's income statement for the year ended December 31, 2019, is given EE.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 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 om lete the ro orma income statement or the ear ended ecember 3 2020 be o ound he percenta o sales o four decima aces and he ro orma inco sta em n tam u tsi e nearest dol ar. 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 eamings 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 $1,394,000 907,000 $487,000 110,000 $377,000 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%) Net profits after taxes Less: Cash dividends To retained earnings Cost of goods sold Fixed cost Variable cost $202,000 705,000 $907,000 Total cost 39,000Operating expenses $338,000 135,200 Fixed expenses Variable expenses $36,000 74,000 $110,000 $202,800 Total expenses 61,000 $141,800 Print DoneStep by Step Solution
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