Noventis Corporation prepared the following estimates for the four quarters of the current year:

First QuarterSecond QuarterThird QuarterFourth

Quarter

Sales $1,450,000 $1,740,000 $2,030,000$2,320,000

Cost of goods sold 445,000 525,000 595,000645,000

Administrative costs 340,000 200,000 205,000215,000

Advertising costs 0 160,000 0 0

Executive bonuses 0 0 0 88,000

Provision for bad debts 00070,000

Annual maintenance costs 78,000000

Additional Information

• First-quarter administrative costs include the $190,000 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.

1. Assuming that actual results donotvary from the estimates provided, determine the amount of net income to be reported each quarter of the current year.
2. Assume that actual results donotvary 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.