Check my work 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 Quarter Second Quarter Third Quarter Fourth Quarter Sales revenue Cost of goods sold Gross profit $ 175,000 105,000 Selling & administrative expenses 70,000 17,500 $205,000 123,000 82,000 20,500 $215,000 129,000 $ 265,000 159,000 Total $860,000 516,000 86,000 106,000 344,000 21,500 26,500 86,000 $ 52,500 $ 61,500 $ 64,500 $ 79,500 Net income $258,000 Historically, cost of goods sold is about 60 percent of sales revenue. Selling and administrative expenses are about 10 percent of sales revenue. Fred Arvada, the chief executive officer, told Mr. Long that he expected sales next year to be 15 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 10 percent Required a. Prepare a pro forma income statement including quarterly budgets for the coming year using Mr. Arvada's estimate b. Prepare a pro forma income statement including quarterly budgets for the coming year using Ms. Banks' estimate. Complete this question by entering your answers in the tabs below. Required A Required B Prepare a pro forma income statement including quarterly budgets for the coming year using Mr. Arvada's estimate. First Quarter Second Quarter Third Quarter Fourth Quarter Total Sales revenue Cost of goods sold Gross profit Selling & administrative expenses Net income $ 0 $ 0 $ Complete this question by entering your answers in the tabs below. Required A Required B Prepare a pro forma income statement including quarterly budgets for the coming year using Ms. Banks' estimate. First Quarter Second Quarter Third Quarter Fourth Quarter Total $ 0 0 0 0 0 0 0 0 0 $ 0 $ 0 Sales revenue Cost of goods sold Gross profit Selling & administrative expenses Net income $ 0 $ 0 $ < Required A Required 8 >