Noventis Corporation prepared the following estimates for the four quarters of the current year: First Quarter…

The following estimates were prepared by Noventis Corporation for the
Four quarters of this year’s current year are:

First Quarter of the Second Quarter. Third Quarter. Fourth Quarter.

Sales $ 1,100,000 $ 1,320,000 $ 1,540,000 $ 1,760,000

Prices of goods sold 410,000 490,000. 560,000 610,000

Administrative costs 270,000 165,000 170,000 185,000 180,000

Advertising costs are 0 140,000 0.

Executive bonuses 0 0 0 60,000

Provisions for bad debts: 0 to 0 56,000

Maintenance costs for an annual 64,000 $0 0

Additional Information • First-quarter administrative costs
Include the annual $120,000 insurance premium. • Advertising costs
The television ads that were paid for in the second quarter are what was being paid.
All broadcasts will take place throughout the whole year. • No special items
During the year, income can be affected. • Noventis estimates an effective
The income tax rate in the year is 40 percent. a. Assuming the actual
The results are consistent with the provided estimates.
The amount of net income that must be reported for each quarter in the current year
year.

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