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|(For Breakdown of Costs and Expenses, click on the icon here - in order to copy the contents of the data table below into a spreadsheet.) Metroline Manufacturing, Inc. Metroline Manufacturing Income Statement for the Year Just Ended Metroline Manufacturing Breakdown of Costs and Expenses into Fixed and Variable Components for the Year Just Ended for the Year Ended December 31, 2020 Sales revenue Less: Cost of goods sold $1,394,000 916,000 $478,000 (percent-of-sales method) Sales $ Cost of goods sold $216,000 700,000 $916,000 Fixed cost Gross profits Less: Operating expenses Operating profits Less: Cost of goods sold % Variable cost 124.000 Gross profits $ $354,000 Total cost Less: Interest expense 32,000 Operating expenses Fixed expenses Variable expenses Less: Operating expenses % $40,000 84,000 $124,000 Net profits before taxes $322,000 Operating profits $ 128,800 $193,200 64,000 $129,200 Less: Taxes (rate = 40%) Total expenses Net profits after taxes Less: Cash dividends Less: Interest expense Net profits before taxes 2$ To retained earnings Less: Taxes Net profits after taxes 2$ Less: Cash dividends

|(For Breakdown of Costs and Expenses, click on the icon here - in order to copy the contents of the data table below into a spreadsheet.) Metroline Manufacturing, Inc. Metroline Manufacturing Income Statement for the Year Just Ended Metroline Manufacturing Breakdown of Costs and Expenses into Fixed and Variable Components for the Year Just Ended for the Year Ended December 31, 2020 Sales revenue Less: Cost of goods sold $1,394,000 916,000 $478,000 (percent-of-sales method) Sales $ Cost of goods sold $216,000 700,000 $916,000 Fixed cost Gross profits Less: Operating expenses Operating profits Less: Cost of goods sold % Variable cost 124.000 Gross profits $ $354,000 Total cost Less: Interest expense 32,000 Operating expenses Fixed expenses Variable expenses Less: Operating expenses % $40,000 84,000 $124,000 Net profits before taxes $322,000 Operating profits $ 128,800 $193,200 64,000 $129,200 Less: Taxes (rate = 40%) Total expenses Net profits after taxes Less: Cash dividends Less: Interest expense Net profits before taxes 2$ To retained earnings Less: Taxes Net profits after taxes 2$ Less: Cash dividends

Managerial Accounting: The Cornerstone of Business Decision-Making
Managerial Accounting: The Cornerstone of Business Decision-Making
7th Edition
ISBN:9781337115773
Author:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger
Publisher:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger
Chapter15: Financial Statement Analysis
Section: Chapter Questions
Problem 40E: Cuneo Companys income statements for the last 3 years are as follows: Refer to the information for...
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(For Income Staement, click on the icon here in order to copy the contents of the data table below into a spreadsheet.) (For Breakdown of Costs and Expenses, click on the icon here a in order to copy the contents of the data table below into a spreadsheet.) Metroline Manufacturing, Inc. Metroline Manufacturing Metroline Manufacturing Breakdown of Costs and Expenses into Fixed and Variable Components Income Statement for the Year Ended December 31, 2020 for the Year Just Ended (percent-of-sales method) Sales revenue $1,394,000 for the Year Just Ended Less: Cost of goods sold 916,000 Cost of goods sold Sales $216,000 Gross profits Less: Operating expenses $478,000 Fixed cost Less: Cost of goods sold % 124,000 Variable cost 700,000 Gross profits $ Total cost $916,000 Operating profits Less: Interest expense $354,000 32,000 Operating expenses Fixed expenses Less: Operating expenses % Net profits before taxes $322,000 $40,000 Operating profits Less: Taxes (rate = 40%) 128,800 Variable expenses 84,000 Less: Interest expense Net profits after taxes $193,200 Total expenses $124,000 Less: Cash dividends 64,000 Net profits before taxes $ To retained earnings $129,200 Less: Taxes Net profits after taxes Less: Cash dividends To retained earnings %24 %24
Transcribed Image Text:(For Income Staement, click on the icon here in order to copy the contents of the data table below into a spreadsheet.) (For Breakdown of Costs and Expenses, click on the icon here a in order to copy the contents of the data table below into a spreadsheet.) Metroline Manufacturing, Inc. Metroline Manufacturing Metroline Manufacturing Breakdown of Costs and Expenses into Fixed and Variable Components Income Statement for the Year Ended December 31, 2020 for the Year Just Ended (percent-of-sales method) Sales revenue $1,394,000 for the Year Just Ended Less: Cost of goods sold 916,000 Cost of goods sold Sales $216,000 Gross profits Less: Operating expenses $478,000 Fixed cost Less: Cost of goods sold % 124,000 Variable cost 700,000 Gross profits $ Total cost $916,000 Operating profits Less: Interest expense $354,000 32,000 Operating expenses Fixed expenses Less: Operating expenses % Net profits before taxes $322,000 $40,000 Operating profits Less: Taxes (rate = 40%) 128,800 Variable expenses 84,000 Less: Interest expense Net profits after taxes $193,200 Total expenses $124,000 Less: Cash dividends 64,000 Net profits before taxes $ To retained earnings $129,200 Less: Taxes Net profits after taxes Less: Cash dividends To retained earnings %24 %24
a. Use the percent-of-sales method to prepare a pro forma income statement for the year ended 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 the nearest dollar.) 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
Transcribed Image Text:a. Use the percent-of-sales method to prepare a pro forma income statement for the year ended 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 the nearest dollar.) 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
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