Pro forma income statement The marketing department of Metroline Manufacturing estimates that its sales in 2020 will be $1.53 milion Interest expense is expected to remain unchanged at $40.000, and their plans to pay $60,000 in cash dividends during 2020. Metroine Manufacturing Income statement for the year anded December 31, 2018, ngen along with a breakdown of scoot of goods sold and operating expenses into their fixed and variable components a. Use the percent of a method to prepare a pro forma income statement for the year ended December 31, 2020 b. Use feed and variable cost data to develop a proforma 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 come? Explain why a. Use the percent of sales method to prepare a proforma income statement for the year ended December 31, 2020 Complete the proforma income statement for the year ended December 31, 2020 below (Round the percentage of sales to four decimal places and the proforma income statement amount to the nearest Gollar:) nog (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.) 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 $1,406,000 for the Year Ended December 31, 2019 Less: Cost of goods sold 905,000 Cost of goods sold Gross profits $501,000 Fixed cost $212,000 Less: Operating expenses 123,000 Variable cost 693,000 Operating profits $378,000 Total cost $905,000 Less: Interest expense 40,000 Operating expenses Net profits before taxes $338,000 Fixed expenses $30,000 Less: Taxes (rate=40%) 135,200 Variable expenses 93,000 Net profits after taxes $202,800 Total expenses $123,000 Less: Cash dividends 60,000 To retained earings $142,800 Pro Forma Income Statement Metroline Manufacturing, Inc for the Year Ended December 31, 2020 percent-of-sales method) Sales $ Less Cost of goods sold Gross profits $ Less: Operating expenses Operating profes $ Les Interest expense Net profits before les $ Lesses Net profits after aces 5 Less: Cash dividends Toined naming $ % for the Year Ended December 31, 2020 (based on fixed and variable cost data) Sales Less: Cost of goods sold Fixed cost Variable cost Gross profits $ Less: Operating expenses Fixed expense Variable expense Operating profits Less: Interest expense Net profits before taxes $ Less: Taxes $ $ Net profits after taxes Loss: Cash dividends To retained earnings c. Compare and contrast the statements developed in parts a, and b. Which statement probably provides the better estimate of 2020 income? Explain why Select from the drop-down menus.) The proforma income statement developed using the fired and variable cont duta projects a net profit after taxes due to cost of goods sold and operating expenses. Although the percent-of-sales method projects a more estute of net profit after takes. The proforma como siement that classifies fired and variable contin accurate Help Me Solve This View an Example Get More Help Clear All Final Check