Net Income
a.	1st Quarter
	2nd Quarter
	3rd Quarter
	4th Quarter
b.	1st Quarter
	2nd Quarter
	3rd Quarter
	4th Quarter

Noventis Corporation prepared the following estimates for the four quarters of the current year: Sales Cost of goods sold Administrative costs Advertising costs Executive bonuses Provision for bad debts Annual maintenance costs First Quarter $ 1,200,000 420,000 290,000 0 0 0 68,000 Second Quarter $ 1,440,000 500,000 175,000 180,000 0 0 0 Third Quarter $ 1,680,000 570,000 180,000 0 Fourth Quarter $ 1,920,000 620,000 190,000 0 68,000 60,000 0 0 0 0 Additional Information . First-quarter administrative costs include the $140,000 annual insurance premium. Advertising costs paid in the second quarter relate to television advertisements that will be broadcast throughout the entire year. No special items affect income during the year. Noventis estimates an effective income tax rate for the year of 40 percent. . a. Assuming that actual results do not vary from the estimates provided, determine the amount of net income to be reported each quarter of the current year. b. Assume that actual results do not vary from the estimates provided except for that in the third quarter, the estimated annual effective income tax rate is revised downward to 38 percent. Determine the amount of net income to be reported each quarter of the current year. Noventis Corporation prepared the following estimates for the four quarters of the current year: Sales Cost of goods sold Administrative costs Advertising costs Executive bonuses Provision for bad debts Annual maintenance costs First Quarter $ 1,200,000 420,000 290,000 0 0 0 68,000 Second Quarter $ 1,440,000 500,000 175,000 180,000 0 0 0 Third Quarter $ 1,680,000 570,000 180,000 0 Fourth Quarter $ 1,920,000 620,000 190,000 0 68,000 60,000 0 0 0 0 Additional Information . First-quarter administrative costs include the $140,000 annual insurance premium. Advertising costs paid in the second quarter relate to television advertisements that will be broadcast throughout the entire year. No special items affect income during the year. Noventis estimates an effective income tax rate for the year of 40 percent. . a. Assuming that actual results do not vary from the estimates provided, determine the amount of net income to be reported each quarter of the current year. b. Assume that actual results do not vary from the estimates provided except for that in the third quarter, the estimated annual effective income tax rate is revised downward to 38 percent. Determine the amount of net income to be reported each quarter of the current year