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 Quarter Quarter Quarter Second Third Fourth Total Sales revenue Cost of goods sold Gross profit Selling & administrative expenses Net income $179,000 209,000 $219,000 $269,000 $876,000 109,500 109, 500 21,900 104,500 104,500 20,900 $71,600 83,600 89,500 89,500 17,900 134,500 134,500 26,900 87,600 $107,600$350,400 438,000 438,000 87,600 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, told Mr. Long that he expected sales next year to be 10 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 rorma 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. 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 Cost of goods sold Gross profit Selling & administrative expenses Net income 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 usig Ms. Banks's estimate First Quarter Second Quarter Third Quarter Fourth Quarter Total Sales revenue Cost of goods sold Gross profit Selling & administrative expenses Net income