Pro forma income statement The marketing department of Metroline Manufacturing estimates that its sales in 2020 will be $1.61 million. Interest expense is expected to remain unchanged at $35,000, and the firm plans to pay $69,000 in cash dividends during 2020. Metroline Manufacturing's income statement for the year ended December 31,2019 , 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 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. Pro forma income statement The marketing department of Metroline Manufacturing estimates that its sales in 2020 will be $1.61 million. Interest expense is expected to remain unchanged at $35,000, and the firm plans to pay $69,000 in cash dividends during 2020. Metroline Manufacturing's income statement for the year ended December 31,2019 , 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 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