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 $ 179,000 $ 209,000 $ 219,000 $ 269,000 $ 876,000 Cost of goods sold (125,300) (146,300) (153,300) (188,300) (613,200) Gross profit 53,700 62,700 65,700 80,700 262,800 Selling & administrative expenses (17,900) (20,900) (21,900) (26,900) (87,600) Net income $ 35,800 $ 41,800 $ 43,800 $ 53,800 $ 175,200 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 10 percent for each respective quarter above last years level. However, Rita Banks, the vice president of sales, told Mr. Long that she believed sales growth would be only 5 percent. Required Prepare a pro forma income statement including quarterly budgets for the coming year using Mr. Arvadas estimate. Prepare a pro forma income statement including quarterly budgets for the coming year using Ms. Banks estimate