Pillows Inc, makes decorative throw pillows for home use. The following information was taken from the Pillows Inc. sales budget: (Click the icon to view the first quarter sales budget.) The following information was taken from the Pillows Inc. direct materials budget (Click the icon to view information from the direct materials budget.) Read the requirements Assume the following additional information was gathered about the types of sales made in the fourth quarter (October through December) of the previous year (Click the icon to view the fourth quarter sales budget.) Requirement 1. Prepare the cash collections budget for January, February, and March, as well as the summary for the first quarter. Pillows Inc. Cash Collections Budget For the Quarter Ended March 31 1st Quarter March January Cash sales Collections on credit sales: 75% of credit sales made last month 15% of credit sales made two months ago 8% of credit sales made three months ago Total cash collections Requirement 2. Prepare the cash payments budget for direct materials purchases for the months of January, February, and March, as well as a summary for the arter then continue to the next question. Data Table Pillows Inc. Sales Budget: Type of Sale For the Quarter Ended March 31 Type of Sale: January February March 1st Quarter Cash sales (10%) $204,000 $306,000 $314,500 $824,500 Credit sales (90%) 1,836,000 2.754,000 2,830,500 $7,420,500, $2,040,000 $3,060,000 $3,145,000 $8,245,000 Total sales revenue The company's collection history indicates that 75% of credit sales is collected in the month after the sale, 15% is collected two months after the sale, 8% is collected three months after the sale, and the remaining 2% is never collected. Print Done w as a sur iew t i Data Table are the Type of Sale: Cash sales (10%) Credit sales (90%) Pillows Inc. Sales Budget: Type of Sale For the Quarter Ended December 31 October November December 142,800 $ 137,200 $ 137,200 S 1,285,200 1,360,800 1,234,800 $ 1,428,000 $ 1,372,000 $ 1,372,000 $ 4th Quarter 417,200 3,880,800 I sales: s made s made 4,172,000 Total sales revenue madet Print Done ns repare the cash payments budget for direct materials purchases for the months of January February, and March, as well as a su P adres Data Table Pillows Inc. Excerpt from Direct Materials Budget For the Quarter Ended March 31 January February March 1st Quarter Total cost of DM purchases $ 1,269,400 $ 1,603,800 $ 1,695,200 $ 4,568,400 Assume that the total cost of direct materials purchases in December was $725,000. The company pays 40% of its direct materials purchases in the month of purchase, and pays the remaining 60% in the month after purchase on cr edits edits Bisa Print Done Collections quarter sales budget.) Requirements 1. Prepare the cash collections budget for Jactuary, February, and March, as well as the summary for the first quarter. Prepare the cash payments budget for direct materials purchases for the months of January, February, and March, as well as a summary for the quarter. On Print Done on/ months ago n payments budget for direct materials purchases for the months of January February, and March, as well as a su ds and then continue to the next question. Requirement 2. Prepare the cash payments budget for direct materials purchases for the months of January February, and quarter. Pillows Inc. Cash Payments Budget - Direct Materials For the Quarter Ended March 31 February 40% of current month DM purchases 60% of last month's DM purchases March 1st Quarter Total cash payments for DM Enter any number in the edit fields and then continue to the next