Pllows 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) Assume the following additional formation was gathered about the types of sales made in the fourth quarter (October tough December of the previous year Cuck the icon to view the fourth quarter sales budget The following information was taken from the Pllows Inc direct materials budget Click the icon to view information from the direct materials budget.) Read the clements Pillows Inc. Cash Collections Budget For the Quarter Ended March 31 January February March 1st Quarter Cashes Collections on creates 75% of credit sales made last month 15% of credit sales made two months ago 1% of credit sales made three months ago Total cash collection Requirement 2. Pepare the cash payments budget for direct materials purchases for the month of January February and Martha well as a summary for the quarter 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 quarter Pwlows Inc Cash Payens Budget Direct Material For the Quarter Ended March 31 JAY February March Titter A0% of current month March 60% of st month's purchases Total payments for DM 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%) $180.000 $216,000 $315,000 $711,000 Credit sales (90%) 1,620,000 1,944,000 2,835,000 $6,399,000 $1,800,000 $2,160,000 $3,150,000 $7.110,000 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 or Data table Pillows Inc. Sales Budget: Type of Sale For the Quarter Ended December 31 Type of Sale: Cash sales (10%) Credit sales (90%) $ October November 142,800 $ 137.200 $ 1,285,200 1.360,800 1.428,000 $ 1,372,000 $ December 137,200 $ 1,234,800 $ 4th Quarter 417,200 3,880,800 Total sales revenue 1,372,000 $ 4,172,000 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 575,900 $ 747,500 $ 956,400 $2,279,800 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. Print Done Requirements Prepare the cash collections budget for January, February, and March, as New 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 Print Done