United Insurance Company Specializes in Term Life Insurance Contracts

question 53

Multiple Choice

United Insurance Company specializes in term life insurance contracts.Cash collection experience shows that 30 percent of billed premiums are collected in the month before they are due,60 percent are collected in the month they are due,and 6 percent are collected in the month following their due date.Four percent of the billed premiums are collected late (in the second month following their due date) .Total billing notices in January were $50,000;in February,$60,000;in March,$66,000;in April,$65,000;in May,$60,000;and in June,$70,000.How much cash does the company expect to collect in May?

• A)$63,540
• B)$66,750
• C)$60,000
• D)$56,000

---

Definitions:

Hypothermia

A medical emergency that occurs when the body loses heat faster than it can produce heat, causing a dangerously low body temperature.

Hyperthermia

An abnormally high body temperature, often resulting from external factors like heat exposure or internal disease processes.

Hypoglycemia

A condition where blood sugar (glucose) levels are lower than normal, which can cause symptoms like shakiness, sweating, and confusion.

Feeding Intolerance

Difficulty in digesting food without adverse effects, often seen in infants and those with digestive system disorders.