Pro forma income statement The marketing department of Metroline Manufacturing estimates that its sales in 202 will be $1.66 million. Interest expense is expected to remain unchanged at $30,000, and the firm plans to pay $65,000 in cash dividends during 2020 . Metroline Manufacturing's income statement for the year ended December 31, 2019, given along with a breakdown of the firm's cost of goods sold and operating expenses into their fixed and variab 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 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.)" Pro Forma Income Statement Metroline Manufacturing, Inc. for the Year Ended December 31, 2020 (percent-of-sales method) Data table (For Income Staement, click on the icon here D in order to copy the contents of the data table below into a spreadsheet) (For Breakdown of Costs and Expenses, click on the icon here in order to copy the contents of the data table below into a spinwarlehnat I 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 Pro Forma income Statement Metroline Manufacturing, Inc. View an example b. Use fixed and variable cost data to develop 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.). Sales Less: Cost of goods sold Fixed cost Variable cost Gross profits - Less. Operating expenses Fixed expense Clear all Check answer Less: Operating expenses Fixed expense Variable expense Operating profits Less: Interest expense Net profits before taxes Less Taxes Not nornfite after tavoe % Operating profits Less: Interest expense Net profits before taxes Less: Taxes Net profits after taxes - Less. Cash dividends To retained earnings c. Compare and contrast the statements developed in parts a. and b. Which statement probably provides the better estimate of 2020 income? Explain why. (Select from the drop-down menus.) The pro forma income statement developed using the fixed and variable cost data projects a net profit after taxes due to cost of goods sold and operating expenses. Although the percent-of-sales method projects a more estimate of net profit after taxes, the pro forma income statement that classifies fixed and variable cost is accurate
