The marketing department of Metroline Manufacturing estimatesthat its sales in

20202020

will be

$ 1.51$1.51

million. Interest expense is expected to remain unchanged at

$ 36 comma 000$36,000?,

and the firm plans to pay

$ 66 comma 000$66,000

in cash dividends during

20202020.

Metroline? Manufacturing's income statement for the year endedDecember? 31,

20192019?,

is given

Metroline Manufacturing Income Statement for the Year Ended December? 31, 20192019 Copy to Clipboard + Open in Excel + Sales revenue $ 1 comma 405 comma 000$1,405,000 ?Less: Cost of goods sold 919 comma 000919,000 Gross profits $ 486 comma 000$486,000 ?Less: Operating expenses 126 comma 000126,000 Operating profits $ 360 comma 000$360,000 ?Less: Interest expense 36 comma 00036,000 Net profits before taxes $ 324 comma 000$324,000 ?Less:Taxes ?(rate equals 40 %rate=40%?) 129 comma 600129,600 Net profits after taxes $ 194 comma 400$194,400 ?Less: Cash dividends 62 comma 00062,000 To retained earnings Modifying $ 132 comma 400 with doubleunderline       $132,400

Metroline Manufacturing Breakdown of Costs and Expenses into Fixed and Variable Components for the Year Ended December? 31, 20192019 Copy to Clipboard + Open in Excel + Cost of goods sold ?????Fixed cost $ 214 comma 000$214,000 ?????Variable cost 705 comma 000705,000 Total cost Modifying $ 919 comma 000 with doubleunderline      $919,000 Operating expenses ?????Fixed expenses $ 37 comma 000$37,000 ?????Variable expenses 89 comma 00089,000 Total expenses Modifying $ 126 comma 000 with doubleunderline      $126,000

?,

along with a breakdown of the? firm's cost of goods sold andoperating expenses into their fixed and variable components.

a. Use the ?percent-of-sales method to prepare a pro formaincome statement for the year ended December? 31,

20202020.

b. Use fixed and variable cost data to develop a pro formaincome statement for the year ended December? 31,

20202020.

c. Compare and contrast the statements developed in parts a. andb. Which statement probably provides the better estimate of

20202020

?income? Explain why.

a. Use the ?percent-of-sales method to prepare a pro formaincome statement for the year ended December? 31,

20202020.

Complete the pro forma income statement for the year endedDecember? 31,

20202020

?below:???(Round the percentage of sales to four decimal placesand the pro forma income statement amounts to the nearest?dollar.)

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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 profits	$
Less: Operating expenses					%
Operating profits	$
Less: Interest expense
Net profits before taxes	$
Less: Taxes
Net profits after taxes	$
Less: Cash dividends
To retained earnings	$