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Solving for cash collections (Appendix 9.1). Lyndhurst Corporation normally collects cash from credit customers as follows: 50 percent in the month of sale, 30 percent in the first month after sale, 18 percent in the second month after sale, and 2 percent never collected. Lyndhurst Corporation expects its credit sales to be as follows:
January
$1,000,000
February
1,200,000
March
800,000
April
1,000,000
a. Calculate the amount of cash Lyndhurst Corporation expects to receive from credit customers during March.
b. Calculate the amount of cash Lyndhurst Corporation expects to receive from credit customers during April.
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