Pro forma income statement. The marketing department of Metroline Manufacturing estimates that its sales next year will be $1.51 million. Interest expense is expected to remain unchanged at 531,000, and the firm plans to pay 574,000 in cash dividends. Metroline Manufacturing's income statement for the previous year is given . along with a breakdown of the firris cost of goods sold and operating expenses into thoir fixed and variable components a. Use the percent-of-sales method to prepare a pro foma incotre statement for hext year b. Use ficed and variable cost data to develog a pro forma income statement for next year c. Compare and contrast the stalements developed in parts a. and b. Which statement probably provides the better astimate of income? Explain why Meuroine Manmactu Income Stateme for the Year Just Ende Sales revenue Less: Cost of goods sold Gross profits Less Operating expenses Operating profits Operating profits Net profits before taxes Less. Taxes (rate =40% ) Net profits after taxes Less: Cash dividends To retained earnings