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

	First Quarter			Second Quarter			Third Quarter			Fourth Quarter
Sales	$	1,250,000		$	1,500,000		$	1,750,000		$	2,000,000
Cost of goods sold		425,000			505,000			575,000			625,000
Administrative costs		300,000			180,000			185,000			195,000
Advertising costs		0			200,000			0			0
Executive bonuses		0			0			0			72,000
Provision for bad debts		0			0			0			62,000
Annual maintenance costs		70,000			0			0			0

Additional Information

• First-quarter administrative costs include the $150,000 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 do not vary from the estimates provided, determine the amount of net income to be reported each quarter of the current year.

   	net income
   1st quarter
   2nd quarter
   3rd quarter
   4th quarter

2. 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.

   	net income
   1st quarter
   2nd quarter
   3rd quarter
   4th quarter