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 $176,000 BB,000 88,000 17,600 $ 70,400 Second Quarter $206,000 103,000 103,000 20,600 $ 82,400 Third Quarter $216,000 108,000 108,000 21,600 $ 86, 400 Fourth Quarter $266,000 133,000 133,000 26,600 $ 106,400 Total $864,000 432,000 432,000 86,400 $345,600 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 Mold 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. 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. Required A Required B Prepare a pro forma income statement including quarterly budgets for the coming year using Ms. Banks' estimate. First Quarter Second Quarter Third Quarter Fourth Quarter Total Sales revenue Cost of goods sold Gross profit Selling & administrative expenses Net income