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 Cont of goods sold Gross profit Selling administrative expenses Bet income First Quarter $ 170,000 119,000 51,000 17,000 $ 34,000 Second Quarter $ 200,000 140,000 60,000 20,000 $40,000 Third Quarter $ 210,000 147,000 63,000 21,000 Fourth Quarter $ 260,000 182,000 78,000 26,000 52,000 Total $840,000 588,000 252,000 84,000 $ 42,000 $168,000 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 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 proforma Income statement including quarterly budgets for the coming year using Ms. Banks' estimate 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 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 proforma 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 Prepare a pro forma income statement including quarterly budgets for the coming year using Me. Arvada's estimate First Quarter Second Fourth Third Quarter Quarter Total Quarter Sales revenue Cost of goods sold Cross proti Not income 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 Regulded B Prepare a proforma income statement including quarterly budgets for the coming year using Ms. Banks' estimate First Quarter Socand Quarter Third Quarter Fourth Quarter Total Sales reven Cost of goods sold Cross pro Selling ansative expenses Not income