Moorcroft Company's budgeted sales and direct materials purchases are as follows: April Budgeted Sales Budgeted D.M. Purchases $ 313,000 $ 41,000 289.000 60,000 339.000 60,000 May June 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. (a) Your answer is correct. Prepare a schedule of expected collections from customers for June. Moorcroft Company Schedule of Expected Collections from Customers Sales April May April 313000 $ 162760 93900 $ May 289000 150280 June 339000 Total Collections $ 162760 244180 $ (a) Your answer is correct. Prepare a schedule of expected collections from customers for June. Moorcroft Company Schedule of Expected Collections from Customers April May Sales June 313000 162760 93900 S 48828 289000 150280 86700 339000 176280 162760 246180 311008 (6) Your answer is correct. Prepare a schedule of expected payments for direct materials for June Moorcroft Company Schedule of Expected Payment for Direct Materials Purchases April May June 41000 20500 8200 $ 12300 60000 30000 12000 60000 30000 $ 20500 $ 38200 $ 54300 (C) 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 Jun April May June Total Collections $ $ $ Would it be worth paying the collector $1,000 per month? It worth paying the collector $1,000 per month to improve the cash collections of the company