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 revemue Cost of goods sold Gross profit Selling & administrative expenses Net income First Quarter $178, 000 106, 800 71, 200 17, 800 53, 400 Second Quarter $208, 000 124, 800 83, 200 20, 800 62, 400 Third Quarter $218, 000 130, 800 87, 200 21, 800 65, 400 Fourth Quarter $268, 000 160, 800 107, 200 26, 800 $80, 400 Total $872, 000 523, 200 348, 800 87, 200 $261, 600 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. 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 Gross profit Selling & administrative expenses Net income