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 Quarter Third Quarter Fourth Quarter Total Sales revenue $ 175, 000 $ 205, 000 $ 215, 000 $ 265,000 $ 860, 000 Cost of goods sold 105, 000 123, 000 129, 000 159, 000 516, 000 Gross profit 70, 000 82,000 86,000 106, 000 344, 000 Selling & administrative expenses 17,500 20, 500 21, 500 26,500 86, 900 Net income $ 52,500 $ 61,500 $ 64,500 $ 79,500 $ 258, 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 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.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. First Quarter Second Fourth Quarter Third Quarter Total Quarter Sales revenue $ Cost of goods sold 0 Gross profit 0 0 0 0 Selling & administrative expenses 0 Net income S 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. First Quarter Second Fourth Total Quarter Third Quarter Quarter Sales revenue $ Cost of goods sold 0 Gross profit 0 0 0 0 0 Selling & administrative expenses 0 Net income $ 0 $ 0 $ 0 $ 0 $ 0