The marketing department of Metroline Manufacturing estimates that its sales in

2020

will be

$1.56

million. Interest expense is expected to remain unchanged at

$38,000,

and the firm plans to pay

$66,000

in cash dividends during

2020.

Metroline Manufacturing's income statement for the year ended December31,

2019,

is given

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, 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.

Done AA Amathxl.com BCOR 2204-001-013: Princ of Financial Mgmt Madison Bishop & 11/04/21 12:12 AM = Homework: Finan... Question 8, P4-16 (simil.. Part 2 of 3 3 HW Score: 76.93%, 46.16 of 60 points Points: 0 of 6 O Save Pro forma income statement The marketing department of Metroline Manufacturing estimates that its sales in 2020 will be $1.56 million. Interest expense is expected to remain unchanged at $38,000, and the firm plans to pay $66.000 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. w 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.) Sales Les Gross Les Metroline Manufacturing Income Statement for the Year Ended December 31, 2019 Sales revenue $1,394,000 Less: Cost of goods sold 918,000 Gross profits S476,000 Less: Operating expenses 122,000 Operating profits S354,000 Less: Interest expense 38,000 Net profits before taxes $316,000 Less: Taxos (rate=40%) 126,400 Net profits after taxes S189,600 Less: Cash dividends 61,000 To retained earnings S128,600 Metroline Manufacturing Breakdown of Costs and Expenses into Fixed and Variable Components for the Year Ended December 31, 2019 Cost of goods sold Fixed cost S212,000 Variable cost 706,000 Total cost $918,000 Operating expenses Fixed expenses $35,000 Variable expenses 37,000 Total expenses S122.000 Opere Les Netp Les Net p Les To rell b. Use fixe Print Done a income Complete slalomont Pro Forma Income Statement Metroline Manufacturing, Inc. for the Year Ended December 31, 2020 (based on fixed and variable cost data) Sales $ 1.560,000 Less: Cost of goods sold Fixed cost 212,000 % $ % Variable cost Gross profits Less: Operating expenses Fixed expense Variable expense Operating profils Less: Interest expense Net profits before taxes Less: Taxes : Net profits after taxes Less: Cash dividends : $ $ $ Help me solve this View an example Get more help Clear all Check answer Done AA Amathxl.com BCOR 2204-001-013: Princ of Financial Mgmt Madison Bishop & 11/04/21 12:12 AM = Homework: Finan... Question 8, P4-16 (simil.. Part 2 of 3 3 HW Score: 76.93%, 46.16 of 60 points Points: 0 of 6 O Save Pro forma income statement The marketing department of Metroline Manufacturing estimates that its sales in 2020 will be $1.56 million. Interest expense is expected to remain unchanged at $38,000, and the firm plans to pay $66.000 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. w 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.) Sales Les Gross Les Metroline Manufacturing Income Statement for the Year Ended December 31, 2019 Sales revenue $1,394,000 Less: Cost of goods sold 918,000 Gross profits S476,000 Less: Operating expenses 122,000 Operating profits S354,000 Less: Interest expense 38,000 Net profits before taxes $316,000 Less: Taxos (rate=40%) 126,400 Net profits after taxes S189,600 Less: Cash dividends 61,000 To retained earnings S128,600 Metroline Manufacturing Breakdown of Costs and Expenses into Fixed and Variable Components for the Year Ended December 31, 2019 Cost of goods sold Fixed cost S212,000 Variable cost 706,000 Total cost $918,000 Operating expenses Fixed expenses $35,000 Variable expenses 37,000 Total expenses S122.000 Opere Les Netp Les Net p Les To rell b. Use fixe Print Done a income Complete slalomont Pro Forma Income Statement Metroline Manufacturing, Inc. for the Year Ended December 31, 2020 (based on fixed and variable cost data) Sales $ 1.560,000 Less: Cost of goods sold Fixed cost 212,000 % $ % Variable cost Gross profits Less: Operating expenses Fixed expense Variable expense Operating profils Less: Interest expense Net profits before taxes Less: Taxes : Net profits after taxes Less: Cash dividends : $ $ $ Help me solve this View an example Get more help Clear all Check