Homework (algo) LO 7-1, 7-2, 7-3, 7-4, 7-5 9 2.54 points eBook 101 Hint Print 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: Sales revenue Cost of goods sold Gross profit Selling & administrative expenses Net income First Quarter $ 171,000 102,600 68,400 17,100 $ 51,300 Required A Complete this question by entering your answers in the tabs below. Required B Saved Second Quarter $ 201,000 120, 600 80,400 20, 100 $ 60,300 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 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. Sales revenue Cost of goods sold Gross profit Selling & administrative expenses 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. Third Quarter $ 211,000 126,600 84,400 21,100 $ 63,300 First Quarter Fourth Quarter $ 261,000 156,600 104,400 26,100 $ 78,300 Prepare a pro forma income statement including quarterly budgets for the coming year using Mr. Arvada's estimate. Second Quarter Third Quarter Total $ 844,000 506,400 337,600 84,400 $ 253,200 Fourth Quarter Total Help Sa

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. Histonically, 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 chicf executive officer, told Mr. Long that he expected soles riext year to be 10 percent for each respective quarter above last year's level. However, Rita Banks, the vice president of sales, fold Mr Long that she believed sales growth would be only 5 percent. Required a. Prepare a pro forma income statement including quarterly budgets for the coming Yhar 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 tobs below. Prepare a pro forma income statement including quarterly budgets for the coming year using Mc. Arvada's estimate