Pro forma income statement The marketing department of Metroline Manufacturing estimates that its sales in 2020 will be $1.51 million. Interest expense is expected to remain unchanged at $34,000, and the firm plans to pay $72,000 in cash dividends during 2020. Metroline Manufacturing's income statement for the year ended December 31, 2019, is given B 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 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. (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 e in order to copy the contents of the data table below into a spreadsheet.) Metroline Manufacturing Metroline Manufacturing Income Statement Breakdown of Costs and Expenses for the Year Ended December 31, 2019 into Fixed and Variable Components Sales revenue $1,409,000 for the Year Ended December 31, 2019 Less: Cost of goods sold 906,000 Cost of goods sold Gross profits $503,000 Fixed cost $220,000 110,000 Variable cost Less: Operating expenses 686,000 $906,000 Operating profits Less: Interest expense 34,000 Operating expenses Net profits before taxes $359,000 Fixed expenses $37,000 Less: Taxes (rate = 40%) 143,600 Variable expenses 73,000 Net profits after taxes $215,400 Total expenses $110,000 Less: Cash dividends 63,000 To retained earnings $152,400 $393,000 Total cost (percent-of-sales method) 1,510,000 Sales Less: Cost of goods sold % Gross profits $ Less: Operating expenses % Operating profits $ Less: Interest expense 34,000 Net profits before taxes Less: Taxes Net profits after taxes $ Less: Cash dividends 72,000 To retained earnings $