Short Exercise 20-5 (Algorithmic) Estimating Cash Collections 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, $60,000; in April, $66,000; in May, $60,000; and in June, $65,000. How much cash does the company expect to collect in June?