Pro forma income statement The marketing department of Metroline Manufacturing estimates that its sales next year will be $$1\mathrm{.}57$ million. Interest expense is expected to remain unchanged at $$30,000,$ and the firm plans to pay $$69,000$ in cash dividends. Metroline Manufacturing's income statement for the previous year is given #$1,$ 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 next year.

b$.$ Use fixed and variable cost data to develop a pro forma income statement for next year.

c$.$ Compare and contrast the statements developed in parts $a.$ and b$.$ Which statement probably provides the better estimate of 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 statement for the year ended December $31,2020$ below: $($Round the percentage of sales to four decimal places and the pro forma income statement amounts to the nearest dollar.$)$

Data table

$\backslash$table$[[$for the Year Just Ended,$\backslash$table$[[$into Fixed at$],[$for thr$]]],[$Sales revenue,$$1,396,000$