Promotion Sports Inc. is a retailer of clothing and sports equipment. The following is Promotion Sports' sales forecast by quarter for the upcoming year.

Promotion Sports Inc. Forecasted Sales For the Year Ended December 31, 2022
	Q1	Q2	Q3	Q4	Total
Sales	$109,000	$306,000	$349,000	$248,000	$1,012,000

In addition, sales in Q3 and Q4 of 2021 totaled $139,000 and $193,000 respectively. According to the company's sales records, 58% of sales are made in cash and the remaining 42% are made on account (i.e. credit sales). Assume the following historical trends were noted by management regarding credit sales:

• 50% of credit customers pay during the quarter in which the sale took place
• 32% of credit customers pay in the quarter immediately following the quarter of sale
• 13% of credit customers pay in the second quarter following the quarter of sale
• The remaining 5% of credit sales are uncollectible

Do not enter dollar signs or commas in the input boxes. Round your answers to the nearest whole number. a) Calculate the forecasted sales for each quarter (separate revenue into cash and credit sales).

Promotion Sports Inc. Forecasted Sales For the Year Ended December 31, 2022
	Q1	Q2	Q3	Q4	Total
Sales	$Answer	$Answer	$Answer	$Answer	$Answer
Cash Sales (@58% of quarter's sales)	$Answer	$Answer	$Answer	$Answer	$Answer
Credit Sales (@42% of quarter's sales)	$Answer	$Answer	$Answer	$Answer	$Answer

b) Prepare the cash receipts section of the 2022 cash budget (on a quarterly basis)

Promotion Sports Inc. Cash Receipts For the Year Ended December 31, 2022
	Q1	Q2	Q3	Q4	Total
Cash Sales	$Answer	$Answer	$Answer	$Answer	$Answer
Current Collections (50%)	$Answer	$Answer	$Answer	$Answer	$Answer
Previous Quarter Collection (32%)	$Answer	$Answer	$Answer	$Answer	$Answer
Two Previous Quarter Collection (13%)	$Answer	$Answer	$Answer	$Answer	$Answer
Total Cash Receipts	$Answer	$Answer	$Answer	$Answer	$Answer