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 Cost of goods sold Gross profit Selling administrative expenses Net Income First Quarter $182,000 127,400 54,600 18,200 $. 36,400 Second Quarter $212,000 148,400 63,600 21,200 $ 42,400 Third Quarter $222,000 155,400 66,600 22,200 $ 44,400 Fourth Quarter $272,000 190,400 81,600 27,200 $ 54,400 Total $888.000 621,600 266,400 88,800 $177,600 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 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 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 Not income 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 Third Quarter Quarter Quarter Total Sales revenue Cost of goods sold Gross profit Selling & administrative expenses Net income