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 $183,000 91,500 91,500 Second Quarter $213,000 106,500 Third Quarter $223,000 Fourth Quarter $273,000 111,5001305446,000 136,500 Total Sales revenue Cost of goods sold Gross profit selling ** acministrative expenses8300300 L2300 2389 200 Net income $892,000 106, 500136,500 22,300 111,5003446,000 27,300 21,300 $ 85,200 89,200 $356,800 $ 73,200 $ 89,200 $109,200 Historically, cost of goods sold is about 50 percent of sales revenue. Selling and administrative expenses are about 10 percent of sales evenue 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. 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's estimate