Moorcroft Company's budgeted sales and direct materials purchases are as follows: Budgeted Sales $316,000 347,000 403,000 Budgeted D.M. Purchases $47,000 49,000 54,000 May 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. Moorcroft Company Schedule of Expected Payment for Direct Materials 7000 23500 $ Apri 400 4100 24500 9800 54000 otal Collections 23500 $ 33900 $ 50900 eTextbook and Media Attempts: 2of 5used Moorcroft's assistant controler su ested that Moorcro hire a part time collector to encourage customers to pay more prompt y and to reduce the am urto uncollectible accounts. Sales are still 40% cash and 60 a tant controller p edi ted that this woul ca e c edit sales to be collected 30% in the month of the sale, 50% inthe month following sale and 18% in the second month follo ing sale 2% are unco tible credit but the 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 May Apri 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