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3 years ago

The statement "Bond prices vary inversely with changes in the market rate of interest" means

Business

1 answer:

Sati [7]3 years ago

5 0

Answer:

The correct answer is option A.

Explanation:

The statement given above says that bond prices vary inversely with changes in market interest rate. It means that there is an inverse relationship between bond prices and the market interest rate.

In other words, when the market interest rate falls, the bond prices will rise and when there is an increase in market interest rate, the bond prices will fall. The bond price and market rate of interest are negatively related.

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Michelle owns a rental property in San Diego that she has rented to Luis for four years. The street on which the house is locate

ivolga24 [154]

Michelle must give Luis a sixty-day written notice of the lease termination because he has lived in the property for more than one year.

Explanation:

The landlord must send a 30-day notice of termination in writing with the occupant at the cost of his will, unless the owner stays in the house for more than one year, which includes a notice of 60 days.

The 60 Days Lease Termination Letter is an appointment for a residential property owner to use when he wishes to vacate a tenant for at least a year or more after residing in the house.

In California, a landlord can terminate a rental after a tenant has spent a year or more on the property and has provided the tenant with a notice of sixty days.

8 0

3 years ago

The comparative balance sheets for Concord Corporation as of December 31 are presented below.

stiks02 [169]

Answer:

Concord Corporation

Statement of Cash Flows for the year ended December 31, 2022

Operating activities:

Net income $32,560

add Depreciation 36,960

Loss from sale of equipment 1,760

Changes in working capital:

Accounts receivable 7,040

Inventory -8,316

Prepaid expenses 5,034

Accounts payable 7,682

Net cash from operations $82,720

Investing activities:

Sale of equipment $7,040

Sale of land 22,000

Purchase of equipment -80,960

Net cash from investments -$51,920

Financing activities:

Dividends payment -10,560

Net cash flows $20,240

Reconciliation:

Beginning cash balance $39,600

Net cash flows $20,240

Ending cash balance $59,840

Explanation:

a) Data and Calculations:

Concord Corporation

Comparative Balance Sheets

December 31

Assets 2022 2021 Changes

Cash $59,840 $39,600 +$20,240

Accounts receivable 44,000 51,040 -7,040

Inventory 133,276 124,960 +8,316

Prepaid expenses 13,446 18,480 -5,034

Land 127,600 114,400 +13,200

Buildings 176,000 176,000 0

Accumulated depreciation

-buildings (52,800) (35,200) (17,600)

Equipment 198,000 136,400 +61,600

Accumulated depreciation

-equipment (39,600) (30,800) (8,800)

Total $659,762 $594,880

Liabilities and Stockholders' Equity

Accounts payable $39,362 $31,680 +$7,682

Bonds payable 264,000 264,000 0

Common stock, $1 par 176,000 140,800 +35,200

Retained earnings 180,400 158,400 +22,000

Total $659,762 $594,880

Additional information:

1. Depreciation $36,960

($17,600 of depreciation expense for buildings and $19,360 for equipment)

2. Sale of land at $22,000

3. Cash dividends paid $10,560

4. Net income for 2022 $32,560

5. Equipment purchase $80,960

Equipment sales $7,040

Loss from sale $1,760

Accumulated Depreciation $10,560

Equipment

Account Titles Debit Credit

Beginning balance 136,400

Cash 80,960

Sale of equipment 19,360

Ending balance 198,000

Sale of Equipment

Account Titles Debit Credit

Equipment 19,360

Accumulated depreciation 10,560

Cash 7,040

Loss from Sale of Equipment 1,760

6. Land $35,200 Common stock $35,200

Land

Account Titles Debit Credit

Beginning balance 114,400

Common stock 35,200

Cash 22,000

Ending balance 127,600

5 0

3 years ago

Preble Company manufactures one product. Its variable manufacturing overhead is applied to production based on direct labor-hour

gavmur [86]

Answer:

<h3>Preble Company</h3>

a. The raw materials cost for the planning budget for March is:

= $1,260,000

b. The raw materials cost included in the company's flexible budget for March

= $1,530,000

c. The materials price variance for March is:

= $90,000

Explanation:

a) Data and Calculations:

Standard Cost Card Per Unit:

Direct materials: 5 pounds at $9 per pound $45

Direct labor: 3 hours at $14 per hour 42

Variable overhead: 3 hours at $8 per hour 24

Total standard cost per unit $111

Planning budget production and sales for March = 28,000 units

Actual production and sales for March = 34,000 units

Purchase of 180,000 pounds of raw materials / 5 = 36,000 units

Purchase cost = $8.50 per pound

Price variance = $0.50 per pound favorable ($9.00 - $8.50)

Total purchase cost = $1,530,000

Direct labor worked = 69,000

Standard labor hours = 34,000 * 3 = 102,000 hours

Direct labor volume variance = 33,000 hours (102,000 - 69,000)

Standard variable manufacturing overhead = $816,000 (34,000 * $24)

a. The raw materials cost for the planning budget for March is:

= $1,260,000 ($9 * 5 * 28,000)

b. The raw materials cost included in the company's flexible budget for March

= $1,530,000 ($9 * 5 * 34,000)

c. The materials price variance for March is:

= $90,000 ($9 - $8.50)180,000

4 0

3 years ago

If the market price is above or equal to the average cost, but below the average cost the firm should keep producing in the run

tangare [24]

If the market price is above or equal to the average variable cost, but below the average total cost the firm should keep producing in the run even though it does so at a loss.

<h3>When should a firm shut down production?</h3>

A firm should continue production in the short run if the price is above the average variable cost even if price is below the average total cost. The short run is a period when at least one or more factors of production are fixed.

To learn more about when a firm should shut down, please check: brainly.com/question/13034691

6 0

2 years ago

If the contribution margin is not sufficient to cover fixed expenses:.

Elan Coil [88]

If there is an insufficient contribution margin to cover fixed expenses, there will always be an occurrence of a net loss.

<h3>What is a Contribution Margin?</h3>

The contribution margin can be expressed in gross income terms. After subtracting the variable element of the firm's expenditures, it indicates the extra money gained for each product sold.

The contribution margin is calculated by subtracting the selling price/unit from the variable cost/unit.

This metric displays how much a certain product adds to the company's total earnings. It displays the share of revenue that helps to pay the firm's fixed costs and gives one approach to illustrate the profit potential of a certain product supplied by a company.

Therefore, If there is an insufficient contribution margin to cover fixed expenses, there will always be an occurrence of a net loss.

Learn more about contribution margin here:

brainly.com/question/24881206

7 0

2 years ago