9 16.72 poi nts Sklpped eBook Hint Ask References Jacob Long, the controller of Arvada Corporation, is trying to prepare a sales budget for the coming year. The income statements for the last four quarters follow: First Second Third Fourth Quarter Quarter Quarter Quarter Total Sales revenue $181,000 $211,000 $221,000 $271,000 $884,000 Cost of goods sold 90,500 105,500 110,500 135,500 442,000 Gross profit 90,500 105,500 110,500 135,500 442,000 Selling & administrative expenses 18,100 21,100 22,100 27,100 88,400 Net income $ 72,400 $ 84,400 $ 88,400 $108,400 $353,600 Historically, cost of goods sold is about 50 percent of sales revenue. Selling and administrative expenses are about 10 percent of sales revenue. Fred Arvada, the chief executive ofcer, told Mr. Long that he expected sales next year to be 10 percent for each respective quarter above last year's level. However, Rita Banks, the vice president of sales, told Mr. Long that she believed sales growth would be only 5 percent. Required 3. Prepare a proforma income statement including quarterly budgets for the coming year using Mr. Arvada's estimate. b. Prepare a proforma income statement including quarterly budgets for the coming year using Ms. Banks' estimate. Complete this question by entering your answers in the tabs below. Pnnllirnrl A anlirnrl R