Budgeted Cash Collections, Budgeted Cash Payments Historically, Ragman Company has had no significant bad debt experience with its customers. Cash sales have accounted for 20 percent of total sales, and payments for credit sales have been recelved as follows: 40 percent of credit sales in the month of the sale 35 percent of creda 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. Required: 1. What is the forecasted cash inflow for Ragman Company for May? s 2. Due to deteriorating economic condtions, 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 hoppen to the total expected cash inflow related to sales made in Apra? (CMA adapted) 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 wart happen to the total expected cash inflow related to sales made in Aprif? (CMA actapted) Cach wit by 1