Requirement 1. Prepare the cash collections budget for January, February, and March, as well as the summary for the first quarter. Cozy Pillows Cash Collections Budget For the Quarter Ended March 31 January February March 1st Quarter 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 - Data table Cozy Pillows Sales Budget: Type of Sale For the Quarter Ended March 31 January $130,000 1st Quarter $470,000 Type of Sale: Cash sales (10%) Credit sales (90%) Total sales revenue February $160,000 1,440,000 $1,600,000 March $180,000 1,620,000 $1,800,000 1,170,000 $1,300,000 $4,230,000 $4,700,000 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. Data table Cozy Pillows Sales Budget: Type of Sale For the Quarter Ended December 31 October 142,400 $ $ Type of Sale: Cash sales (10%) Credit sales (90%) Total sales revenue November 151,000 $ 1,359,000 4th Quarter 431,000 December 137,600 $ 1,238,400 $ 1,281,600 3,879,000 4,310,000 $ 1,424,000 $ 1,510,000 $ 1,376,000 $ Print Done Data table Cozy Pillows Excerpt from Direct Materials Budget For the Quarter Ended March 31 January February March 1st Quarter Total cost of DM purchases $ 1,346,400 $ 1,605,600 $ 1,804,000 $ 4.756,000 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