Exercise 14-15A (Algo) Preparing pro forma income statements with different assumptions LO 14-6 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: Historically cost of goods sold is about 60 percent of sales revenue. Selling and administrative expenses are about to percent of sales revenue. Fred Arvoda, the chief executive officec, 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 belleved sales growth would be only 5 percent Requlred a. Prepore a pro forma income statement including quarteny 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. Compiete this question by entering your answers in the tabs below. Prepare a pro forma income statemsent induding quarterly budgets for the coming year using Mr. Arvadas estimate. Exercise 14-15A (Algo) Preparing pro forma income statements with different assumptions LO 14-6 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: Historically cost of goods sold is about 60 percent of sales revenue. Selling and administrative expenses are about to percent of sales revenue. Fred Arvoda, the chief executive officec, 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 belleved sales growth would be only 5 percent Requlred a. Prepore a pro forma income statement including quarteny 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. Compiete this question by entering your answers in the tabs below. Prepare a pro forma income statemsent induding quarterly budgets for the coming year using Mr. Arvadas estimate