Pillows Ltd$.$ makes decorative throw pillows for home use. The following information was taken from the Pillows Ltd$.$ 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.$)$

Requirement $1.$ Prepare the cash collections budget for January, February, and March, as well as the summary for the first quarter.

Pillows Ltd$.$

Cash Collections Budget

For the Quarter Ended March $31$

Data table

Pillows Ltd$.$

Excerpt from Direct Materials Budget

For the Quarter Ended March $31$

The following information was taken from the Pillows Ltd$.$ direct materials budget:

$($Click the icon to view information from the direct materials budget.$)$

Read the requirements.

Data table

Pillows Ltd$.$

Sales Budget: Type of Sale

For the Quarter Ended March $31$

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

$-x$