Moorcroft Company's budgeted sales and direct materials purchases are as follows: April Budgeted Sales Budgeted D.M. Purchases $ 316,000 $ 47,000 336,000 57,000 377.000 61.000 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. 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 $ 316000 $ 336000 100800 377000 Would it be worth paying the collector $ 1.000 per month