nep Save & Exit 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 $175,000 16,500 86,500 12.100 $69.200 Second Quarter 5203,000 101,500 101,500 20,300 $ 31,200 Third Quarter $213,000 106,500 106,500 21,300 585,200 Fourth Quarter $263,000 131,500 131,500 26,00 1105,200 Total $852,000 426.000 420,000 25 200 $340,000 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 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 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 Fourth Third Quarter Total Quarter Sales revenue Cost of goods sold Gross profit Selling & administrative expenses Net income eu Required B Complete this question by entering your answers in the tabs below. Required A Required B Total Prepare a pro forma income statement including quarterly budgets for the coming year using Ms. Banks" estimate First Quarter Second Third Quarter Fourth Quarter Quarter Sales revenue Cost of goods sold Gross profit Selling & administrative expenses Net income