Jacob Long, the controller of Arvada Corporation, is trying to prepare a sales budget for the coming year. The income statements for the last four quarters follow: Sales revenue Cost of goods sold Gross profit Selling & administrative expenses Net income First Quarter $179,000 89,500 89,500 12.900 $ 71,600 Second Quarter $209,000 104,500 104,500 20,900 $ 83,600 Third Quarter $219,000 109500 109,500 21,900 $ 87,600 Fourth Quarter $269,680 134 500 134,500 25,900 $107,600 Totat $876,000 438, eve 438,000 87,600 $350, 400 Historically, cost of goods sold is about 50 percent of sales revenue. Selling and administrative expenses are about 10 percent of sales revenue. Fred Arvado, 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. Answer is not complete. 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 Mr. Arvada's estimate. First Quarter Total $ $ Sales revenue Cost of goods sold Gross profit Selling & administrative expenses Net income 196,000 98,000 98,000 19,500 78.400 Second Quarter $ 229.000 11.450 217,550 22,900 $ 194,660 Third Quarter Fourth Quarter $ 240.000 $ 295.900 12,000 14,795 228,000 281,105 24,000 29,590 204,000 $ 251.515 960,900 136.245 824,655 96,090 728,565 $ $ Jacob Long, the controller of Arvada Corporation, is trying to prepare a sales budget for the coming year. The income statements for the last four quarters follow. First Second Thira Fourth Quarter Quarter Quarter Quarter Total Sales revenue $179,000 $209,000 $219,000 $269,800 $876,680 Cost of goods sold 89.500 104, see 109,500 134,500 438,00 Gross profit 89,500 104,500 109,500 134,500 438,080 Selling & administrative expenses 17,9ee 20,900 21,900 26,988 87,500 Net income $ 71,600 $ 83,600 $ 87,600 $107,600 $350,400 Historically, cost of goods sold is about 50 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. 3 Answer is not complete. Complete this question by entering your answers in the tabs below. Required Required B Prepare a pro forma income statement including quarterly budgets for the coming year using Ms. Blanks estimate First Quarter Second Quarter Third Quarter Fourth Quarter Total S 0 Sales revenue Cost of goods sold Gross profit Selling & administrative Not Income 0 0 0 0 0 D S 0 $ 0 $ 0 0 0 S