Moorcroft Company's budgeted sales and direct materials purchases are as follows Budgeted Sales Budgeted D.M. Purchases $47,000 49,000 62,000 April May June $301,000 301,000 397,000 Moorcroft's sales are 40% cash and 60% credit. Credit sales are collected 20% in the month of sale, SON In the month following sale, and 20% In the seco 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 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 in the month of the sale, 50 in the month following sale, and 18% in the second month following sale, 2% are uncollectible. suggested that Moorcroft hire a part time collector to encourage customers to pay more promptly and to reduce the amount 30% 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 Sales April May June April May June Total Collections Would it be worth paying the collector $1,000 per month? s worth paying the collector $1,000 per month to improve the cash collections of the company it