Budgeted Cash Collections, Budgeted Cash Payments Mistorically, Ragman Company has had no significant bad debt experience. wath its customers. Cash sains have sccounted for 20 percent of total sales, and payments for credit sales have been recelved as foliows: 40 percent of credit sales in the month of the sale 35 percent of credit sales in the first subsequent menth 20 percent of credit sales in the second subsequent mowth S percent of credit sales in the third subsequeat month The forectht for both cach and credit saies is as follows: Required 1. What is the forecasted cash inflow for Ragman Compatiy for May? 2. Due to detenorating economic conditiont, ftagetan Company hat now dedided that its rain forecast shoud include a bad debt adjustment of 2 perceot of oredit sales, beginhing with sales for the merith of April, Eecaute of this pollcy drange, what wil happen to the total espected cash infore related to ta es mace in April? (CMA adepted) Cash will toy 1