Moorcroft Campany's budgeted sales and direct materials purchases are as follows: Budgeted Sales Budgetod D.M Purchases April S316.000 $49.000 May 332,000 56,000 Jure 367.000 00,000 Moorcrott's sales are 40% cash and 20% credit. Credit sales are collected 20% in the month of sale, 50t in the month following sale, and 26% in the second month following sale 4% are uncollectible. Mooncroft's purchases are 50% cash and 50% on account. Purchases on account are paid 40 in the month following the purchase and 60% in the second month following the purchase Prepare a schedule of expected collections from customers for June Moorcoll Company Schedule of Expected Collections from Customers April May April May Total Collections Prepare a schedule at expected payments for direct materials for Junc. Moorcraft Company Schedule of Expected Payment for Direct Materials April May Purchases April May Total Collections Moordrottsassistant controller suggested that Moorcraft hire a part time collector to encourage customers to pay more promptly and to reducn the amount of uncollectible accounts. Sales are still 40 month of the sale. 50% in the month followine sale, and 18% in the second month following sale: 2% are uncolectible cash and credit but the assistant controller predicted that this would cause credit sales to be collected 30% in the Prepare a schedule of expected collections from customers for June. How did these changes impact cash collections Moorcraft Company Schedule of Expected Collections from Customers April Sales April May Total Collections Would it be worth paying the collector $1,000 per month worth paying the collector $1,000 per month to improve the cash collections of the company The assistant controller aka suggested that the company with their purchases to 40% cash and axan account to help stretch out their cash payments. There is no additional interest chargin to do this and Moorcraft is still paying their hills on time. There is no change to the company's payment attem. Moorcroft Company's budgeted sales and direct materials purchases are as follows: April May June Budgeted Sales Budgeted D.M. Purchases $316,000 $49,000 332,000 56,000 367,000 60,000 Moorcroft's sales are 40% cash and 60% credit. Credit sales are collected 20% in the month of sale, 50% in the month following sale, and 26% in the second month following sale; 4% are uncollectible. Moorcroft's purchases are 50% cash and 50% on account. Purchases on account are paid 40% in the month following the purchase and 60% in the second month following the purchase. Prepare a schedule of expected collections from customers for June. Moorcroft Company Schedule of Expected Collections from Customers April May Sales June April $ May June Total Collections Moorcroft's assistant controller suggested that Moorcroft hire a part time collector to encourage customers to pay more promptly and to reduce the amount of uncollectible accounts. Sales are still 40% cash and 60% credit but the assistant controller predicted that this would cause credit sales to be collected 30% in the month of the sale, 50% in the month following sale, and 18% in the second month following sale; 2% are uncollectible. Prepare a schedule of expected collections from customers for June. How did these changes impact cash collections? Moorcroft Company Schedule of Expected Collections from Customers April May Sales June April May June Total Collections Would it be worth paying the collector $1,000 per month? + worth paying the collector $1,000 per month to improve the cash collections of the company. Prepare a schedule of expected payments for direct materials for June. Moorcroft Company Schedule of Expected Payment for Direct Materials May Purchases April June April $ May June Total Collections 4