Pro forma income statement. The marketing department of Metroline Manufacturing estimates that its sales next year will be $ $1\mathrm{.}52$ million. Interest expense is expected to remain unchanged at $ $39,000$ and the firm plans to pay $ $67,000$ in cash dividends. Metroline$$ Manufacturing's income statement for the previous year is given LOADING...$,$ along with a breakdown of the$$ 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.$($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.$)$