paymenks foe breat wien have been mocived an Asleak: 49 percent of trede tsim in the mants ad the Lid Ws percert of trean soles w the sceond isheshent miren. Mequared: thace in Apedl |cWli antabthe: Budgated Cash Collections. Budgeted Cash Payments. Historically, Ragman Company has had no significant bad debt experience with its customers, Cash seles have accounted for 20 percent of frtal wiea, and payments for credit salos have been recelved 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 saies 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? 2. Due to deteriorating economic conditions, Ragman Company has new declded that its cash forecast should include a bad debt adjustment of 2 . percerit of credit sales, beginning with sales for the menth of April. Becaufe of this policy change, what will happen to the total expected cash inflow related to sales maale in Apcil? (CMA adapted) 1. What is the forecasted cash inflow for Ragman Company for May? 2. Due to deteriorating economic conditions, Ragman Compsmy has how decided that its cash forecast should include a bod debt adjuttment of 2 percent of credit sales, beginning with sales for the month of Aprit. Because of this policy change, what will happen to the total expected cash inflow retaterd tu salrs made in Aprit? (cmA adapted) Cosh witi F check Miden 1. Remember that vou are forecasting for May. Use the percentages for each month as outined and dont forget to add in the cash for Mary 2. Apply the bad debt adjustment to Apri, How is cash arfected