The marketing department of Metroline Manufacturing estimates that its sales in 2016 will be $1.61 million. Interest expense is expected to remain unchanged at $34,000, and the firm plans to pay $69,000 in cash dividends during 2016. MetrolineManufacturing's income statement for the year ended December31, 2015, is given LOADING...

, along with a breakdown of thefirm'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 December31, 2016.

b. Use fixed and variable cost data to develop a pro forma income statement for the year ended December31, 2016.

c. Compare and contrast the statements developed in parts a. and b. Which statement probably provides the better estimate of 2016income? Explain why.

USE THE ATTATCHMENT BELOW AND PLEASE HELP ME ANSWER THE BLANKS AS WELL AS b. AND c.

Pro forma income statement The marketing department of Metroline Manufacturing estimates that its sales in 2016 will be $1.61 million. Interest expense is expected to remain unchanged at $34,000, and the firm plans to pay $69,000 in cash dividends during 2016. Metroline Manufacturing's income statement for the year ended December 31, 2015, 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, 2016. b. Use fixed and variable cost data to develop a pro forma income statement for the year ended December 31, 2016. c. Compare and contrast the statements developed in parts a. and b. Which statement probably provides the better estimate of 2016 income? Explain why. for the Year Ended December 31, 2016 (percent-of-sales method) Sales i Data Table X Less: Cost of goods sold Gross profits Less: Operating expenses % (Click on the icon located on the top-right corner of the data tables below in order to copy its contents into a spreadsheet.) Operating profits Metroline Manufacturing Metroline Manufacturing Less: Interest expense Income Statement Breakdown of Costs and Expenses Net profits before taxes for the Year Ended December 31, 2015 into Fixed and Variable Components Sales revenue $1,407,000 for the Year Ended December 31, 2015 Less: Taxes Less: Cost of goods sold 918,000 Cost of goods sold Net profits after taxes S Gross profits $489,000 Fixed cost $216,000 Less: Operating expenses 114,000 Variable cost 702,000 Less: Cash dividends Operating profits $375,000 Total cost $918,000 To retained earnings S Less: Interest expense 34,000 Operating expenses Net profits before taxes $341,000 Fixed expenses $30,000 Less: Taxes (rate = 40%) 136,400 Variable expenses 84,000 Enter any number in the edit fields and then click Check Answer. Net profits after taxes $204,600 Total expenses $114,000 Less: Cash dividends 66,000 2 parts $138,600 remaining To retained earnings