Pillows inc. makes docorateve throw pallows for home use. The folowing information was taken The following information was taken from the Pllows inc. direct maserials budget: from the Plows lne. sales budget: (Clck the icon to vew information from the direct maferials badget) (Click the ioon lo view the frist quarter sales budget) Assume the following addisonal intomution was gathered about the fypes of sales made in the Read the tequirements fourth cuarter (Octaber through December) of the previous year. IT (Clck the loon to view the fourth quaster sales budget) Recuirement 1. Propsre the cosh collections budget for January, Fobruary, and March, as well as the summary for the frat quarter: Data table Ine cumperys conection numtory indicates that 75\% of credi 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 Data table Rec Pillows inc. Excerpt from Direct Materials Budget For the Quartor Ended March 31 Total cost of DM purchases Assume that the iotal oost of direct materisis purchases in Decomber was $725,000. The company pays 40% of its direct materials purcheses in the month of purchase, and phys the remaining 60% in the month afer purchase. 1. Prepare the cash collections budget for January, February, and March, as well as the summary for the first quarter. 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 quarter