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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 10% 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 289000 i 150280 May June 339000 162760 244180 Total Collections $ (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 $ 48828 289000 150280 86700 339000 176280 162760 244180 $ 311808 (b) Your answer is correct Prepare a schedule of expected payments for direct materials for June. Moorcroft Company Schedule of Expected Payment for Direct Materials April May Purchases April 41000 20500 8200 May 60000 30000 June 60000 Total Collections 20500 38200 $ (b) Your answer is correct. Prepare a schedule of expected payments for direct materials for June. Moorcroft Company Schedule of Expected Payment for Direct Materials April May Purchases June 41000 20500 8200 12300 60000 30000 12000 60000 30000 20500 38200 54300 (c) Your answer is correct 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 April 313000 181540 93900 May 289000 167620 June 339000 Total Collections $ 181540 $ 261520 $ (c) Your answer is correct. 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 Sales April June May 313000 181540 93900 33804 289000 167620 86700 196620 339000 181540 261520 317124 (d) The assistant controller also suggested that the company switch their purchases to 40% cash and 60% on account to help stretch out their cash payments. There is no additional interest charge to do this and Moorcroft is still paying their bills on time. There is no change to the company's payment pattern Prepare a schedule of expected payments for direct materials for June Moorcroft Company Schedule of Expected Payment for Direct Materials April May Jun Purchases S April May June $ $ Total Collections How did these changes impact the cash payments for June? Cash payments bys