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 Sales revenue Quarter Totat $173,000 Cost of goods sold $283,800 $213,000 $263,000 $852,000 103,800 121,800 Gross profit 127 800 157, 800 511, 200 69,200 81,200 85,200 105,200 340, 800 Selling & administrative expenses 17.300 20,300 21,300 26,300 85,200 Net income $ 51,900 $ 60,900 $ 63,900 $ 78,900 $255,600 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 Me. 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 Third Quarter Quarter Total Quarter Sales revenge Cost of goods sold Gross profit Seling & administrative expenses Not income Required 8 > 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 $173,080 $283,000 $213,000 $263,000 $852,000 Cost of goods sold 103,800 121,800 127,800 157,800 511,200 Gross profit 69,200 81,200 85,200 105,200 340,800 Selling & administrative expenses 17,300 20,300 21,300 26,300 85,200 Net income $ 51,900 $ 60,900 $ 63,900 $ 78,900 $255,600 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 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 Third Quarter Fourth Quarter Total Quarter Sales revenue Cost of goods sold Gross profit Selling & administrative expenses Net income