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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

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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 First QuarterQuarterQuarter Second Third Fourth Quarter Total Sales revenue Cost of goods sold Gross profit Selling & administrative expenses Net income $185, $215,080 $225,0 $275,eee $9e8,80 135,080 110 129,ee8 129, eee 548,8e0 360,ee 99,e00 74,880 18,580 86,9165,8e0 9e,0e0 21,500 55,589 64,500 22.50027 58e 9,0e 67,500 82,500 $270,e00 Historicaly, cost of goods sold is about 60 percent of sales revenue. Selling and administrative expenses are about t0 percent of sales revenue Fred Arvada, the chief executive officer, told Mt. 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 usingMir. 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 0 0 S 0 S RequiredB > 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 Ms. Banks's estimate. First Quarter Second Quarter Third Quarter Fourth Quarter Total Sales revenue Cost of goods sold Gross proft Selling & administrative expenses Net income 0 Required A Required B

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