Pro forma income statement The marketing department of Metroline Manufacturing estimates that its sales in 2016 will be $1.57 million. Interest expense is expected to remain unchanged at $33,000, and the firm plans to pay $73,000 in cash dividends during 2016. Metroline Manufacturing's income statement for the year ended December 31, 2015, is given ,along with a breakdown of the firm's cost of goods sold and operating expenses into their fixed and variable components. Use the percent-of-sales method to prepare a pro forma income statement for the year ended December 31, 2016 Use the percent-of-sales method to prepare a pro forma income statement for the year ended December 31, 2016 Complete the pro forma income statement for the year ended December 31, 2016 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, 2016 (percent-of-sales method) Data Table Sales (Click on the icon located on the top-right corner of the data tables below in order to copy its contents into a spreadsheet.) Less: Cost of goods sold Gross profts Metroline Manufacturing Income Statement for the Year Ended December 31, 2015 Metroline Manufacturing Breakdown of Costs and Expenses into Fixed and Variable Components for the Year Ended December 31, 2015 Less: Operating expenses Operating profits 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 eamings $1,396,000 905,000 S491,000 114,000 Cost of goods sold Fixed cost Variable cost $210,000 695,000 $905,000 Less: Interest expense Net profits before taxes $377,000 Total cost Less: Taxes 33,000 Operating expenses $344,000 37,600 Fixed expenses Variable expenses $31,000 83,000 $114,000 Net profits after taxes Less: Cash dividends $206.400 Total expenses 65,000 $141,400 To retained canings Print Done