Noventis Corporation prepared the following estimates for the four quarters of the current year: First Quarter $ 1,350,000 435,000 320,000 Second Quarter $ 1,620,000 515,000 190,000 120,000 Third Quarter $ 1,890,000 585,000 195,000 Sales Cost of goods sold Administrative costs Advertising costs Executive bonuses Provision for bad debts Annual maintenance costs Fourth Quarter $ 2,160,000 635,000 205,000 0 80,000 66,000 0 o Oo 74,000 0 Additional Information First-quarter administrative costs include the $170,000 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. Net Income a. 1st Quarter 2nd Quarter 3rd Quarter 4th Quarter b. 1st Quarter 2nd Quarter 3rd Quarter 4th Quarter