Pro forma income statement the marketing department of Metroline Manufacturing estimates that its sales next year will be 51.62 million. Interest exponse is expected to remain unchanged at $31,000, and the firm plans to pay $65,000 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. Une 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 botter estimate of incomu? Explain why a. Use the percent-of-sales method to prepare a pro forma income statement for the year ended December 31, 2020. Complete the pro forma income statement for the year ended December 31, 2020 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, 2020 (percent-of-sales method) Data table a. Use b. Use c. Con a. Use Compl forma Metroline Manufacturing Income Statement for the Year Just Ended Sales revenue Less: Cost of goods sold Gross profits Less: Operating expenses Operating profits Less Interest expense Net profits before taxes Loss: Taxes (rate - 40%) Net profits after taxes Less: Cash dividends To retained eamings $1,400,000 900.000 $500,000 114,000 $386,000 31,000 $355,000 142,000 S213,000 69,000 $144,000 Metroline Manufacturing Breakdown of Costs and Expenses into Fixed and Variable Components for the Year Just Ended Cost of goods sold Fixed cos! S202,000 Variable cost 698,000 Total cost $900,000 Operating expenses Fixed expenses $32,000 Variable expenses 82,000 Total expenses $114,000 wer Hel Print Done