The following information was taken from the Pillows.com direct materials budget: (Click the icon to view information from the direct materials budget.) Pillows.com makes decorative throw pillows for home use. The following information was taken from the Pillows.com sales budget: Click the icon to view the first quarter sales budget.) 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.) Read the requirements BERG March Requirement 1. Prepare the cash collections budget for January, February, and March, as well as the summary for the first quarter. Pillows.com Cash Collections Budget For the Quarter Ended March 31 January February 1st Quarter Cash sales Collections on credit sales: 75% of credit sales made last month 15% of credit sales made two months ago 3% of credit sales made three months ago Total canh collection 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 Pillows.com Cash Payments Budget - Direct Materials For the Quarter Ended March 31 January February March 1st 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. Pillows.com Cash Payments Budget - Direct Materials For the Quarter Ended March 31 January February March 1st Quarter 40% of current month DM purchases 60% of last month's DM purchases Total cash payments for DM Data table Pillows.com Sales Budget: Type of Sale For the Quarter Ended March 31 Type of Sale: January February March 1st Quarter Cash sales (10%) $169,000 $182.000 $227,500 $578,500 1,521,000 Credit sales (90%) 1,638,000 2,047,500 $5,206,500 $1,690,000 $1,820.000 $2,275,000 Total sales revenue $5,785,000 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. nd Print Done Data table Pillows.com Sales Budget: Type of Sale For the Quarter Ended December 31 October November December 4th Quarter S Type of Sale: Cash sales (10%) Credit sales (90%) Total sales revenue 142,800 $ 1,285,200 137200 S 1.360.800 137,200 $ 1,234,800 $ 1,372,000 $ 417,200 3,880,800 1.428.000 S 1372.000 S 4,172,000 na fd Print Done - x Data table Cas Coll 75 Pillows.com Excerpt from Direct Materials Budget For the Quarter Ended March 31 January February March 1st Quarter $ Total cost of DM purchases 977 400 S 1.114,200 $ 1,317,600 $3,409,200 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. 151 8A Tota os Reg sum Print Done