Historically, cost of goods sold is about percent of sales revenue. Selling and administrative expenses are about percent of sales revenue.
Fred Arvada, the chief executive officer, told Mr Long that he expected sales next year to be 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 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.
Prepare a pro forma income statement including quarterly budgets for the coming year using Mr Arvada's estimate.
tableFirst Quarter,tableSecondQuarterThird Quarter,tableFourthQuarterTotalSales revenue,,$Cost of goods sold,,,,,,Gross profit,Selling & administrative expenses,,,,Net income,$$$$$
