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nnectmheducaion.com/flow/connecthtml Saved Help Save & E Chec Noventis Corporation prepared the following estimates for the four quarters of the current year First Quarter Second QuarteE Ounrter Sales Coat ot goods sold Adminis 1,500,000 ;1,800,000 450,000 50,000 30, 000 205,000 2.100. 000 600,000 2 10, 000 2.400,000 650, 000 220,000 180,000 92,000 72,000 Prov i.ion tot bad debe Annual maiste 80,000 Additional Information First-quarter administrative costs include the $200,000 annual insurance premium - Advertisng costs paid in the second quarter relate to teievison advertisements that will be broadcast throughout the entire year - No special items affect income during the yea . Noventis estimates an effective income tax ,ate for the yea, of 40 percent g that actual resalts do not vary from the estimates provnded determane the amount of net income to be reported each ax rate is revised downward to 38 percent Determine the amount of net income to be reported each quarter of ssumin quarter of the curent year the current year

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Part-a 1 QTR 2 QTR 3 QTR 4 QTR Particulars Sales 1,500,000 1,800,000 2,100,000 2,400,000 cost of goods sold 450,000 530,000 600,000 650,000 Administrative Costs 200,000 255,000 260,000 270,000 Advertising costs 45000 45,000 45,000 45,000 Executive bonuses 23,000 23,000 23,000 23,000 Provision for bad debts 18,000 18,000 18,000 18,000 Annual maintenance costs 20,000 20,000 20,000 20,000 Pre-tax income 744,000 909,000 1,134,000 1,374,000 income tax 297600 363600 536000 549600 Net income 446400 545400 680400 824400 Working Note: Administrative cost Administrative Cost ( Excluding Insurance) 150000 205,000 210,000 220000 add 200,000 insurance premium 50000 50000 50000 50000 total 200000 255,000 260,000 270000 Part-b 1 QTR 2 QTR 3 QTR 4 QTR Particulars Sales 1,500,000 1,800,000 2,100,000 2,400,000 cost of goods sold 450,000 530,000 600,000 650,000 Administrative Costs 200,000 255,000 260,000 270,000 Advertising costs 45000 45,000 45,000 45,000 Executive bonuses 23,000 23,000 23,000 23,000 Provision for bad debts 18,000 18,000 18,000 18,000 Annual maintenance costs 20,000 20,000 20,000 20,000 Pre-tax income 744,000 909,000 1,134,000 1,374,000 Income Tax Rate 40% 40% 38% 38% Income Tax 297600 363600 430920 522120 Net income 446,400 545,400 703,080 851,880