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 First Quarter $185,000 Second Third Fourth Quarter Quarter Quarter $215,000 $225,000 $275,000 Total $900,000 Cost of goods sold 111,000 129,000 135,000 165,000 540,000 Gross profit Selling administrative expenses Net income 74,000 18,500 $ 55,500 86,000 90,000 110,000 360,000 21,500 22,500 27,500 90,000 $ 64,500 $ 67,500 $ 82,500 $270,000 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. Required A Required B