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 $299,000 $48,000 May 330,000 49,000 June 398,000 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) Your answer is correct. Prepare a schedule of expected collections from customers for June. Moorcroft Company Schedule of Expected Collections from Customers Sales 299000 330000 398000 eTextbook and Media April 155480 $ 64 May 89700 171600 June 46644 99000 206960 155480 261300 352604 Prepare a schedule of expected payments for direct materials for June. Moorcroft Company Schedule of Expected Payment for Direct Materials Purchases 48000 49000 eTextbook and Media L April 24000 May 9600 24500 24000 34100 June Attempts: 1 of 3 L 1 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? April May June Collections Moorcroft Company Schedule of Expected Collections from Customers Sales April S VI May S 69