Pro forma income statement. The marketing department of Metroline Manufacturing estimates that its sales next year will be $1.50 million. Interest expense is expected to remain unchanged at $35,000, and the firm plans to pay $70,000 in

cash dividends. Metroline Manufacturing's income statement for the previous year is given HA, 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.

Data Use the percent of a method to prepare b. Use feed and variable cost dotato develop c. Compare and contrast the statements deve Data table Use the percent of a method to prepare Complete the proforma income statement for nearest dollar) Pro Forma Income Metroline Manufact for the Year Ended Dec (percent-of-sales (For Income Stement click on the icon here in order to copy the contents of the datatable below into a spreadsheet.) (For Breakdown of Costs and Expenses, click on the icon here in order to copy the contents of the datatable below into a spreadsheet) Metroline Manufacturing Metroline Manufacturing Income Statement Breakdown of Costs and Expenses for the Year Just Ended Into Fixed and Variable Components for the Year Just Ended $1,400,000 Sales revenue Less: Cost of goods sold 910,000 Cost of goods sold Gross profits $490,000 Fixed cost $210,000 Less: Operating expenses 120,000 Variable cost 700.000 Operating profits $370,000 Total cost 5910,000 Less Interest expense 35,000 Operating expenses Net profits before taxes $335,000 Fixed expenses $36.000 Less Taxes (rate -21%) 70,350 Variable expenses 54,000 Net profits are taxes $264,650 Total expenses $120,000 Less: Cash dividends 06.000 To retained earnings $198,650 Sales $ $ Less: Cost of goods sold Gross profita Less Operating expenses Operating profits Loss Interest expense Net profes before taxes Lesa: Tuxes $ $ $ Net profits after takes Loss Cash dividends Print Done To retained eaming 5 5 a. Use the percent-of-sales thod to prepare a proforma income water for next year b. Used and variable cost data to develop a proforma intre statement for rent year e. Compare and contrast the starts developed in parts.db. Which statement probably provides the better estimate of income? Explain why 2. Use the front of method to prepare a proforma come statement for the year and December 31, 2020 Complete the proforma income statement for the year anded December 31, 2020 Round the percentage of sales to four complaces and the proforma Income sort out to the nearest total Pro Forma Income Statement Metroline Manufacturing, Inc. for the Year Ended December 31, 2020 (percent of sales method * 1500000 La Cost of goods sold Gross profs 5 Les Operating expenses Opening profis s Les interest expense Netpris for taxes 5 Less Taxe Net profiter $ Les Cash dividende To retained earnings 3 Clear all View an example Etext pages Get more help