View Policies Show Attempt History Current Attempt in Progress Moorcroft Company's budgeted sales and direct materials purchases are as follows: Budgeted Sales Budgeted D.M. Purchases April $316,000 May 347,000 June 403,000 $47,000 49,000 54,000 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) (b) (c) (d) Your answer is partially 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 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 Purchases 47000 49000 54000 April 23500 May 9400 24500 23500 33900 How did these changes impact the cash payments for June? Cash payments decreased by $ eTextbook and Media Save for Later 1420 June Attempts: 2 of 3 used Submit