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.

Prepare a pro forma income statement including quarterly budgets for the coming year using Mr$.$ Arvada's estimate.

$\backslash$table$[[,$First Quarter,$\backslash$table$[[$Second$],[$Quarter$]],$Third Quarter,$\backslash$table$[[$Fourth$],[$Quarter$]],$Total$],[$Sales revenue,,$-,,,$$$,0],[$Cost of goods sold,,,,,,$0],[$Gross profit,$,0,0,0,,0],[$Selling & administrative expenses,,,,$7,18,0],[$Net income,$$,$$$,$$$,$$$,$$$,0]]$