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 $90,000 54,000 36,000 8,500 $27,500 Second Quarter $100,000 60,000 40,000 10,000 $ 30,000 Third Quarter $105,000 63,000 42,000 10,500 $ 31,500 Fourth Quarter $130,000 78,000 52,000 13,000 $ 39,000 Total $425,000 255, 000 170,000 42,000 $128, 000 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 8 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 Rrou Mort 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 Quarter Third Quarter Fourth Quarter Total Sales revenue $ 99,000 $ 99,000 99,000 0 0 0 99,000 Cost of goods sold Gross profit Selling & administrative expenses Net income 0 $ 99,000 $ 0 $ 0 $ 0 $ 99,000 Check my work 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 Quarter Third Quarter Fourth Quarter Total Sales revenue $ 0 0 0 0 0 0 0 Cost of goods sold Gross profit Selling & administrative expenses Net income 0 $ 0 $ 0 $ 0 $ 0 $ 0