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 percer of total sales, and payments for credit sales have been received as follows: 40 percent of credit sales in the month of the sale 35 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 180,000 March 193,000 April 195,000 May 200,000 Required: 1. What is the forecasted cash inflow for Ragman Company for May? 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 ppen to the total expected cash inflow related to sales made in April? (CMA adapted) Cash will by Schedule of Cash Receipts Rosita Flores owns Rosita's Mexican Restaurant in Tempe, Arizona, Rosita's is an affordable restaurant near campus and several hotels. Rosita accepts cash and checks. Checks are deposited immediately. The bank charges $0.50 per check; the amount per check averages $70. "Bad" checks that Rosita cannot collect make up 3 percent of check revenue. During a typical month, Rosita's has sales of $44,000. About 80 percent are cash sales. Estimated sales for the next three months are as follows: April $35,000 44,000 May June 54,000 Required: Prepare a schedule of cash receipts for May and June. Round your intermediate computations and final answers to the nearest whole dollar. Rosita's Mexican Restaurant Schedule of Cash Receipts For the Months of May and June May June Cash sales: Checks Total