Pro forma income statement The marketing department of Metroline Manufacturing estimates that its sales in 2020 will be $1.62 million. Interest expense is expected to remain unchanged at $38.000, and the firm plans to pay $68,000 in cash dividends during 2020. Metroline Manufacturing's income statement for the year ended December 31, 2019. is given 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 e. 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 along with a breakdown 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 Pro Forma Income Statement Metroline Manufacturing, Inc. for the Year Ended December 31, 2020 (percent-of-sales method) Less Cost of goods sold Gross profits Less: Operating expenses Operating profits $ Less: Interest expense Net profits before tax $ Less Taxes Net profits after taxes $ Less: Cash dividends To retained eamings S View an example Got men hele for Breakdown of Costs and Expenses, click on the icon here in order to copy the contents of the data table below into spreadsheet.) Metroline Manufacturing Income Statement for the Year Ended December 31, 2019 Sales revenue Less: Cost of goods sold Grass profits Less: Operating expenses Operating profits Less: Interest expense $1,402,000 Metroline Manufacturing Breakdown of Costs and Expenses into Fixed and Variable Components for the Year Ended December 31, 2019 910,000 Cost of goods sold $492,000 Fixed cost $204,000 127,000 Variable cost 706,000 $910,000 $34,000 130,800 Variable expenses 93,000 $127,000 Net profits before taxes Less: Taxes (rate = 40%) Net profits after taxes Less: Cash dividends To retained earnings $365,000 Total cost 38,000 Operating expenses $327,000 Fixed expenses $196,200 Total expenses 60,000 $136,200 Print Done