When the values of stocks and bonds fluctuate, they have an impact on the balance sheets of insurance companies. why is that impact more likely to be a problem for life insurance companies than for property and casualty companies?
a. because property and casualty insurance companies are likely to have to make a large number of payments in the future, they invest primarily in assets, like .
b. payments from life insurance companies occur in the future, so they invest in instruments, predominantly .
c. life insurance companies face the risk that they will have to sell when prices are low in order to pay policyholders’ claims.

Jordan, inc. sells fireworks. the company’s marketing director developed the following cost of goods sold budget for april, may, june, and july. april may june july budgeted cost of goods sold $62,000 $72,000 $82,000 $88,000 jordan had a beginning inventory balance of $3,000 on april 1 and a beginning balance in accounts payable of $14,600. the company desires to maintain an ending inventory balance equal to 15 percent of the next period’s cost of goods sold. jordan makes all purchases on account. the company pays 65 percent of accounts payable in the month of purchase and the remaining 35 percent in the month following purchase. required prepare an inventory purchases budget for april, may, and june. determine the amount of ending inventory jordan will report on the end-of-quarter pro forma balance sheet. prepare a schedule of cash payments for inventory for april, may, and june. determine the balance in accounts payable jordan will report on the end-of-quarter pro forma balance sheet.