The marketing department Metroline manufacturing estimates that sales in 2020 will be 1.64 million. And trust expense is expected to remain unchanged at 37,000 and the firm plans to pay 67,000 in cash dividends during 2020. Metroline manufacturing's This income statement for the year ended December 31, 2019, along with the breakdown of the firms cost of goods sold and operating expenses and so they're fixed and variable components.

(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 Metrolin Manufacturing Income Statement Breakdown of Costs and Expenses for the Year Ended December 31, 2019 into Fixed and Variable Components Sales revenue $1,400,000 for the Year Ended December 31, 2019 Less: Cost of goods sold 917.000 Cost of goods sold $483,000 Gross profits $217,000 Fixed cost 112,000 Less: Operating expenses 700,000 Variable cost Operating profits $371,000 Total cost $917.000 Less: Interest expense 37,000 Operating expenses Net profits before taxes $334,000 Fixed expenses $33,000 Less: Taxes (rate = 40%) 133,600 Variable expenses 79,000 $200,400 Net profits after taxes $112.000 Total expenses Less: Cash dividends 70,000 To retained earnings $130,400 a. Use the percent of sales method to prepare a proforma income statement for the year anded 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 betur estimate of 2020 income? Explain why 2. Use the percent of sales method to prepare a pro forma income statement for the year anded 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 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 profts $ Less: Operating expenses Operating profits 5 Loss: Interest expens Net profits before taxes $ Less: Tres Net profits after taxes $ Less Cash dividende Enter any number in the edit fields and then click Check Answer a. Use the percent of sales method to prepare a proforma income statement for the year anded 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 betur estimate of 2020 income? Explain why 2. Use the percent of sales method to prepare a pro forma income statement for the year anded 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 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 profts $ Less: Operating expenses Operating profits 5 Loss: Interest expens Net profits before taxes $ Less: Tres Net profits after taxes $ Less Cash dividende Enter any number in the edit fields and then click Check