E Homework: Chapter 4 Homework Question 7, P4-15 (simila.. Part 2 of 3 HW Score: 62.89%, 5.09 of 8 points Points: 0.03 of 1 Save Pro forma income statement The marketing department of Metroline Manufacturing estimates that its sales in 2016 will be $1.63 million. Interest expense is expected to remain unchanged at $38,000, 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. BE for the Year Ended December 31, 2016 (based on fixed and variable cost data) Sales $ Less: Cost of goods sold Fixed cost 203.000 % $ Variable cost Gross profits Less: Operating expenses Fixed expense 37,000 % $ Variable expense Operating profils Less: Interest expense Net profits before taxes 38.000 $ Lens: Taxes $ Net profits after taxes Less: Cash dividends To retained earnings $ Help Me Solve This View an Example Get More Help Clear All Check Answer E Homework: Chapter 4 Homework Question 7, P4-15 (simila.. Part 2 of 3 HW Score: 62.89%, 5.03 of 8 points Points: 0.03 of 1 Save Pro forma income statement The marketing department of Metroline Manufacturing estimates that its sales in 2016 will be $1.63 million. Interest expense is expected to remain unchanged at $38,000, 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. RE b. Use fixed and variable cost data to develop a pro forma income statement for the year ended December 31, 2016. Complete the pro forma income statement for the year ended December 31, 2016 below: (Round the percentage of sales to four decimal places and the pro forma income statement amounts to the nearest dollar.) Pro Forma Income Statement Metroline Manufacturing, Inc. for the Year Ended December 31, 2016 (based on fixed and variable cost data) Sales $ Less: Cost of goods sold Fixed cost 203.000 $ 37,000 Variable cost Gross profils Less: Operating expenses Fixed expense Variable expense Operating profits Less: Interest expense Net ile her avere % $ 38.000 Help Me Solve This View an Example Get More Help Clear All Check Answer E Homework: Chapter 4 Homework Question 7, P4-15 (simila... Part 2 ola HW Score: 62.89%, 5.03 of 8 points Points: 0.03 of 1 Save !! Pro forma income statement The marketing department of Metroline Manufacturing estimates that its sales in 2016 will be $1.63 million. Interest expense is expected to remain unchanged at $38,000, and the firm plans to pay $69.000 in cash dividends during 2016. Metroline Manufacturing ses into their fixed and variable components a. Use the percent-of-sales method to prepare Data Table b. Use fixed and variable cost data to develop c. Compare and contrast the statements devel for the Year Ended Deco (Click on the icon located on the top-right corner of the data tables below in order to copy ils contents into a spreadsheel.) (based on fixed and vari Metroline Manufacturing Metroline Manufacturing Income Statement Breakdown of Costs and Expenses $ Sales for the Year Ended December 31, 2015 into Fixed and Variable Components Less: Cost of goods sold Sales revenue $1.391,000 for the Year Ended December 31, 2015 Less: Cost of goods sold 902.000 Cost of goods sold Fixed cost Gross profits $489,000 Fixed cost $203,000 Variable cost Less: Operating expenses 129,000 Variable cost 699,000 Gross profits $ Operating profits $360,000 Total cost $902,000 Less: Interest expense 38,000 Operating expenses Less: Operating expenses Net profits before taxes $322,000 Fixed expenses $37,000 Fixed expense Less: Taxes (rate=40%) 128,800 Variable expenses 92,000 Variable expense Net profits after taxes $193,200 Total expenses $129,000 Less: Cash dividende 68,000 Operating profils $ To retained earnings $125,200 Less: Interest expense Net profits before taxes $ Lens: Taxes $ Print Print Net profits after taxes Less: Cash dividends Done To retained earnings $ Help Me Solve This View an Example Get More Help Clear All Check