-U 7.5/10 - View Policies Show Attempt History Current Attempt in Progress Sunland Company's budgeted sales and direct materials purchases are as follows: Budgeted Sales Budgeted D.M. Purchases $42.000 April $276.000 327,000 May 52.000 June 357.000 65,000 Sunland's sales are 40% cash and 60% credit. Credit sales are collected 20% in the month of sale, so in the month following sal, and 26% in the second month following sale: 4% are uncollectible. Sunland'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 Correct Answer Your answer is correct 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 Sunland is still paying its bills on time. There is no change to the company's payment pattern Prepare a schedule of expected payments for direct materials for June Sunland Company Schedule of Expected Payment for Direct Materials Purchases May Jun April April May June Total Collections 5 How did these changes impact the cash payments for June? Cash payments by $