Pro forma income statement the marketing department of Metroline Manufacturing estimates that its sales in 2020 will be $1.65 million. Interest expense is expected to remain unchanged at $35,000, and the firm plans to pay $73,000 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. 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) 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 S % Less: Cash dividends To retained earnings S Data table (Click on the icon located on the top-right corner of the data tables below in order to copy its contents into a spreadsheet.) Metroline Manufacturing Income Statement for the Year Ended December 31, 2019 Sales revenue $1,391,000 Less: Cost of goods sold 917.000 Gross profits $474,000 Less: Operating expenses 130,000 Operating profits $344,000 Less: Interest expense 35,000 Net profits before taxes $309,000 Less: Taxes (rate=40%) 123,600 Net profits after taxes $185,400 Less: Cash dividends 62,000 To retained earnings $123,400 Metroline Manufacturing D Breakdown of Costs and Expenses into Fixed and Variable Components for the Year Ended December 31, 2019 Cost of goods sold Fixed cost $204,000 Variable cost 713,000 Total cost $917,000 Operating expenses Fixed expenses Variable expenses 97,000 Total expenses $130,000 $33,000 Proforma Income statement the marketing department of Metrol no Manfacting cars that is a on 2020 will be 81.6 mlion. Imrel poc sexpected to remain ur charged at $35.000, and the form okns to pay $70,000 in cash chords curing 2020. Metrore Warute.cturing's Como Galomonfort your orded December 31, 2018, 16 given along wth a break the mis color coded and operating opens Into torted and variablo componente 2.LH PHIWW IMITIHAHH:1000 A. 1.2020 . Uee wed and variable data to cibe a proforma como statment for the year onded December 31, 2020 EC-Ensemina e.C.de IT terapie. Whically pro 2.20 Esilein wiry. a. Ut etwoch mehed to prepare almenor thyrded haber 31 220 Complote tro pro oma nomo Galomon fortreysur orded December 31, 2020 bolow: Round tro percolage cicales to our de mal places and the proforma incomo statementarons to the nearest dolar) Pro Forma inom Startment Metroline Manufacturing, Ine. for the Year Ended December 31, 2020 (percent-of-sales method ax Sale Data table 19 5 (Click on the loc located on the top right comer of the data abos below In order to copy its colors in a creacchet) 3 Collect an il Grossport Loos: Operating expenses Cparating praise Local Net prostor LOST Net profits afir tas Lesa: Cash didonda TA $ Metrolina Manufacturing - Income Statement for the Year Ended December 31, 2019 Siles revenue $1,501,0% Loss: Costel goods 917 000 GORII $4740 La Opeper 199,000 Operating proti $344050 Intel 315IKE Napoia balorea $99.000 Logs: Taxes fraio -40%! | 123 626 Nepraler ICE $185,400 Lexa. Cuah divina A2000 To nezaned min $12340 Metrolina Manufacturing Breakdown of Conte und ENPARAR Into Food and Variable Components for the Year Ended December 31, 2019 Cails : Fica ! $204 000 Vale: 718000 la cost $100 Fbred expenses 3000 VERHEIRA 97 $190 000 $ 5 To nedoamngs 5 Pro forma income statement the marketing department of Metroline Manufacturing estimates that its sales in 2020 will be $1.65 million. Interest expense is expected to remain unchanged at $35,000, and the firm plans to pay $73,000 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. 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) 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 S % Less: Cash dividends To retained earnings S Data table (Click on the icon located on the top-right corner of the data tables below in order to copy its contents into a spreadsheet.) Metroline Manufacturing Income Statement for the Year Ended December 31, 2019 Sales revenue $1,391,000 Less: Cost of goods sold 917.000 Gross profits $474,000 Less: Operating expenses 130,000 Operating profits $344,000 Less: Interest expense 35,000 Net profits before taxes $309,000 Less: Taxes (rate=40%) 123,600 Net profits after taxes $185,400 Less: Cash dividends 62,000 To retained earnings $123,400 Metroline Manufacturing D Breakdown of Costs and Expenses into Fixed and Variable Components for the Year Ended December 31, 2019 Cost of goods sold Fixed cost $204,000 Variable cost 713,000 Total cost $917,000 Operating expenses Fixed expenses Variable expenses 97,000 Total expenses $130,000 $33,000 Proforma Income statement the marketing department of Metrol no Manfacting cars that is a on 2020 will be 81.6 mlion. Imrel poc sexpected to remain ur charged at $35.000, and the form okns to pay $70,000 in cash chords curing 2020. Metrore Warute.cturing's Como Galomonfort your orded December 31, 2018, 16 given along wth a break the mis color coded and operating opens Into torted and variablo componente 2.LH PHIWW IMITIHAHH:1000 A. 1.2020 . Uee wed and variable data to cibe a proforma como statment for the year onded December 31, 2020 EC-Ensemina e.C.de IT terapie. Whically pro 2.20 Esilein wiry. a. Ut etwoch mehed to prepare almenor thyrded haber 31 220 Complote tro pro oma nomo Galomon fortreysur orded December 31, 2020 bolow: Round tro percolage cicales to our de mal places and the proforma incomo statementarons to the nearest dolar) Pro Forma inom Startment Metroline Manufacturing, Ine. for the Year Ended December 31, 2020 (percent-of-sales method ax Sale Data table 19 5 (Click on the loc located on the top right comer of the data abos below In order to copy its colors in a creacchet) 3 Collect an il Grossport Loos: Operating expenses Cparating praise Local Net prostor LOST Net profits afir tas Lesa: Cash didonda TA $ Metrolina Manufacturing - Income Statement for the Year Ended December 31, 2019 Siles revenue $1,501,0% Loss: Costel goods 917 000 GORII $4740 La Opeper 199,000 Operating proti $344050 Intel 315IKE Napoia balorea $99.000 Logs: Taxes fraio -40%! | 123 626 Nepraler ICE $185,400 Lexa. Cuah divina A2000 To nezaned min $12340 Metrolina Manufacturing Breakdown of Conte und ENPARAR Into Food and Variable Components for the Year Ended December 31, 2019 Cails : Fica ! $204 000 Vale: 718000 la cost $100 Fbred expenses 3000 VERHEIRA 97 $190 000 $ 5 To nedoamngs 5