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 Second Third Fourth Quarter Quarter Quarter Quarter Total Sales revenue $177,000 $207,000 $217,000 $267,000 $868,000 Cost of goods sold 88,500 103,500 108,500 133,500 434,000 Gross profit 88,500 103,500 108,500 133,500 434,000 Selling & administrative expenses Net income: 17,700 20,700 21,700 26,700 86,800 $ 70,800 $ 82,800 $ 86,800 $106,800 $347,200 Historically, cost of goods sold is about 50 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. 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. 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 es 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 $ 0 Cost of goods sold 0 Gross profit 0 0 0 0 0 Selling & administrative expenses 0 Net income $ 0 $ 0 $ 0 $ 0 $ 0 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' estimate. Sales revenue Cost of goods sold Gross profit Selling & administrative expenses Net income $ First Quarter Second Quartes Third Quarter Fourth Quarter Total $ 0 0 0 0 0 0 0 0 0 $ 0 $ 0 $ 0 $ 0