Handout 8-5 (LO 4) The sales revenues of Strong, Inc. for this coming year are as follows. 1 Quarter 1 $100.000 Quarter 2 $200,000 Quarter 3 $300.000 Quarter 4 $400,000 Year $1,000,000 Budgeted sales revenue 40% of the total sales are paid by cash in the same quarter of sales and 60% of total sales are credit sales. Strong, Inc. expects to collect 50% of the credit sales in the same quarter and the remaining 50% of credit sales in the next quarter. The beginning balance of accounts receivable is $50,000 (1.e., the remaining credit sales from the last quarter of the previous year to be collected). Compute the schedule of cash collections for Strong, Inc. | Quarter 1 $100.000 Quarter 2 $200,000 Quarter 3 $300,000 Quarter 4 L Year $400,000 $1,000,000 | Budgeted sales revenue Cash sales of the current quarter (40% of the total sales) Credit sales (60% of total sales) Collected in the current quarter (50%) Cash collected in the current quarter from sales made in the previous quarter 50,000 Budgeted cash collections