Fluffy Pillows makes decorative throw pillows for home use. The following inform

Question

Fluffy Pillows makes decorative throw pillows for home use. The following information was taken from the Fluffy Pillows The following information was taken from the Fluffy Pillows direct materials budget sales budget (Click the icon to view information from the direct materials budget.) (Click the icon to view the first quarter sales budget.) Read the requirements 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. Fluffy Pillows Cash Collections Budget For the Quarter Ended March 31 Requirements January Februany March 1st Quarter 1. Prepare the cash collections budget for January, February, and March, as well as the summary for the first quarter 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 Cash sales Collections on credit sales: 2. 75% of credit sales made last month 15% of credit sales made two months ago 8% of credit sales made three months ago PrintDone Total cash collections Enter any number in the edit fields and then click Check Answer

Explanation / Answer

A) PREPARE CASH COLLECTION BUDGET :

PREPARE CASH PAYMENT BUDGET-DIRECT MATERIALS

January February March 1st quarter Cash sales 204000 221000 229500 654500 Collection from credit sales 75% of credit sale made last month 926100 1377000 1491750 3794850 15% of credit sale made two month ago 204120 185220 275400 664740 8% of credit sale made three month ago 102816 108864 98784 310464 Total cash collection 1437036 1892084 2095434 5424554

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