Help Save & Exit Check 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: Fourth Quarter $269,000 $209,000 S Total $876.000 438,000 Sales revenue Cost of goods sold Gross profit Selling & administrative Net income 32.600 $350.400 **20,400 Historically, cost of goods sold is about 50 percent of sales revenue. Selling and administrative expenses are about 10 percent of sales revenue. * 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's 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 Next Fred Arvado, 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's estimate eBook Complete this question by entering your answers in the tabs below. 10 Required A Required B TO 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 0 Cost of goods sold Gross profit Selling & administrative expenses Net income OS 0S 0S 0S 0 Required > Fred Arvada, the chief executive officer, told Mr. Long above last year's level. However, Rita Banks, the percent expected sales next year to be 15 percent for each respective quarter Mr. Long that she believed sales growth would be only 10 Required 25 points a. Prepare a pro forma income statement b. Prepare a pro forma income statement including budgets for the coming year using Mr. Arvada's estimate. budgets for the coming year using Ms. Banks's estimate. eBook Complete this question by entering Required A Required B Print Quarter Secondlowe or the coming year using Me Banks References Prepare a pro forma income statement including quarterly budgets for the coming year using Ms. Banks's estimate First Quarter Second Quarter Third Quarter Fourth Quarter Total Sales revenue LAN Cost of goods sold Gross profit 0 0 Selling & administrative expenses Net income