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 Mr. Arvada's estimate. First Quarter Second Quarter Third Quarter Fourth Quarter Total lo Sales revenue Cost of goods sold Gross profit Selling & administrative expenses Net income 0 0 $ 0 $ 0 $ 0 $ 0 $ 0 Required A Required B > 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 $177,000 123,900 53,100 17,700 $ 35,400 Second Quarter $207,000 144,900 62,100 20,700 $ 41,400 Third Quarter $217,000 151,900 65, 100 21,700 $ 43,400 Fourth Quarter $267,000 186,900 80,100 26,700 $ 53,400 Total $868,000 607,600 260,400 86,800 $ 173,600 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