1) Standard Insurance Company specializes in term life insurance contracts. Cash collection experience shows that 40 percent of billed premiums are collected in the month in which they are billed, 50 percent are paid in the first month after they are billed, and 6 percent are paid in the second month after they are billed. Four percent of the billed premiums are paid late (in the third month after they are billed) and include a 10 percent penalty payment. Total billing notices in January were $58,000; in February, $62,000; in March, $66,000; in April, $65,000; in May, $60,000; and in June, $62,000.

How much cash does the company expect to collect in June?

2)Eagles Limited needs a cash budget for the month of November. The following information is available:

The cash balance on November 1 is $5,000.

Sales for October and November are $80,000 and $60,000, respectively. Cash collections on sales are 30 percent in the month of sale and 68 percent in the month after the sale; 2 percent of sales are uncollectible.

General expenses budgeted for November are $26,000 (depreciation represents $2,000 of this amount).

Inventory purchases will total $30,000 in October and $40,000 in November. The company pays for half of its inventory purchases in the month of purchase and for the other half the month after purchase.

The company will pay $4,000 in cash for office furniture in November. Sales commissions for November are budgeted at $13,000.

The company maintains a minimum ending cash balance of $4,000 and can borrow from the bank in multiples of $100. All loans are repaid after 60 days.

3) Windsor Lock Company's controller is preparing a production budget for the year. The company's policy is to maintain a finished goods inventory equal to one-half of the following month's sales. Sales of 5,000 locks are budgeted for April. Complete the monthly production budget for the first quarter:

	January		February		March
Sales in units	5,000		4,000		6,000
Add desired units of ending finished goods inventory	2,000
Desired total units	7,000
Less desired units of beginning finished goods inventory
Total production units	4,500