Budgeted Cash Collections, Budgeted Cash Payments Historical Roman Company has had no significant bed debt experience with customers. Cash sales have accounted for 20 percent of total sales and payments for credit sales nave been received as follows: 40 percent of credit sales in the month of the sale 15 percent of credit sales in the first subsequent month 20 percent of credit sales in the second subsequent month 5 percent of credit sales in the third subsequent month The forecast for both cash and credit sales is as follows January $185,000 February 185,000 March 193,000 April 196,000 May 210,000 Required: 1. What is the forecasted cash inflow for Ragman Company for May? X 2. Due to deteriorating economic conditions, Ragman Company has now decided that its cash forecast should include a bad debt adjustment of 2 percent of credit sales, beginning with sales for the month of April Because of this policy change, what will happen to the total expected cash flow related to sales made in Aart? (CMA adapted) Cash will decrease By