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 Quarter Second Third Fourth Quarter Quarter Sales revenue $188,000 $218,000 $228,000 Quarter $278,000 Total $912,000 Cost of goods sold 131,600 152,600 159,600 194,600 638,400 Gross profit 56,400 65,400 Selling & administrative expenses 18,800 Net income $ 37,600 21,800 $ 43,600 68,400 22,800 83,400 273,600 $ 45,600 27,800 $ 55,600 91,200 $182,400 Historically, cost of goods sold is about 70 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' estimate.