Pro forma income statement The marketing department of Metroline Manufacturing estimates that its sales next year will be $1.54 million. Interest expense is expected to remain unchanged at $37,000, and the firm plans to pay $68,000 in cash dividends. Metroline Manufacturing's income statement for the previous year is given , 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. [percom-or-sures memory Sales Less: Cost of goods sold Gross profits Less: Operating expenses Operating profits Less: Interest expense Net profits before taxes Less: Taxes Net profits after taxes Less: Cash dividends To retained earnings % % Pro forma income statement The plans to pay $68,000 in cash dividend and variable components. a. Use the percent-of-sales method to b. Use fixed and variable cost data to c. Compare and contrast the stateme a. Use the percent-of-sales method to Complete the pro forma income state Pro Forma Metroline M for the Year End (percent- i Data Table (For Income Staement, click on the icon here 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 spreadsheet.) Sales revenue Metroline Manufacturing Income Statement for the Year Just Ended Less: Cost of goods sold Gross profits Less: Operating expenses Operating profits Less: Interest expense Net profits before taxes Metroline Manufacturing Breakdown of Costs and Expenses into Fixed and Variable Components for the Year Just Ended $1,404,000 900,000 Cost of goods sold $504,000 Fixed cost 120,000 Variable cost $384,000 Total cost 37,000 Operating expenses $217,000 683,000 $900,000 $36,000 Sales $347,000 Fixed expenses Less: Cost of goods sold Less: Taxes (rate = 40%) 138,800 Variable expenses 84,000 Gross profits Less: Operating expenses Net profits after taxes $208,200 Total expenses $120,000 Less: Cash dividends 67,000 To retained earnings $141,200 Operating profits Enter any number in the edit fields a Print Done unchanged at $37,000, and the firm operating expenses into their fixed ent amounts to the nearest dollar.) ?