Sales revenue Cost of goods sold Gross profit Selling & administrative expenses Net income First Quarter Second Quarter Third Quarter $ 187,000 (130,900) $ 227,000 (158,900) Fourth Quarter $ 277,000 (193,900) 83,100 (27,700) 56,100 (18,700) $ 217,000 (151,900) 65,100 (21,700) 68,100 (22,700) $ 37,400 $ 43,400 $ 45,400 $ 55,400 Total $ 908,000 (635,600) 272,400 (90,800) $ 181,600 Historically, cost of goods sold is about 70 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 10 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 5 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 Ms. Banks' estimate. First Quarter Second Quarter Third Quarter Fourth Quarter Total Sales revenue $ 0 Cost of goods sold 0 Gross profit 0 0 0 0 0 Selling & administrative expenses 0 Net income $ 0 $ 0 $ 0 $ 0 $ 0