Answer:
-The right to convert the shares to common shares
-The right to redeem the preferred shares for cash
Answer: b.point that total sales equals total costs
Explanation:
The Cost-Volume-Profit chart shows the relationship between total costs, volume of goods produced, sales and profit. This chart is very useful as it can show the effect that a change in one variable can have on the others.
The point where the sales line and the total costs line intersect is the point <em>where total sales equal total costs</em>. This point is the break-even point and after this point the company begins to make profits but before this point, the company is making losses.
Answer:
a. c+b≤360....equation 1
b. 2 c+1.5 b≥500.... equation 2, where c and b are the number of cans and bottles of water respectively.
c. The number of water bottles to be sold have to be equal to or more than 142 to cover the cost of renting costumes.
Explanation:
a.
<em>Step 1: Determine maximum number of cans and bottles</em>
As indicated, the number of cans and bottles can not exceed a certain value. This means that the number of cans and bottles can be either equal to or less than that value. The maximum number of cans and bottles can be represented in the following expression;
c+b≤m
where;
c=unknown
b=unknown
m=360
replacing;
c+b≤360....equation 1
b.
<em>Step 2: Determine total amount needed to raise $500</em>
Since $500 dollars is the minimum amount needed, the sales have to be $500 and more. This can be expressed as;
(C×c)+(B×b)≥T
where;
T=total amount needed
C=price per can of lemonade
c=number of cans sold
B=price per bottle of water
b=number of bottles sold
In our case;
T=$500
C=$2
c=unknown
B=$1.50
b=unknown
replacing;
(2×c)+(1.5×b)≥500
2 c+1.5 b≥500.... equation 2
c.
<em>Step 3: Determine least number of bottles of water that must be sold</em>
The least number of bottles of water that must be sold to cover the cost of renting costumes can be solved using equation 2 above;
2 c+1.5 b≥500
where;
c=144
b=unknown
replacing;
(2×144)+1.5 b≥500
288+1.5 b≥500
1.5 b≥500-288
1.5 b≥212
b≥212/1.5=141.33=142
b≥142, meaning the number of water bottles to be sold have to be equal or more than 142 to cover the cost of renting costumes.
Answer:
Operating Cash flow is $19,440
Explanation:
Operating Cash flow
Sales = $38,530
-Costs = $12,750
-Depreciation <u>= $2,550</u>
Operating Income = $23,230
-Interest Expense = $1,850
Income before Tax = $21,380
-Tax <u>= $4,490</u>
Net Income = $16,890
Operating Cash Flow = Net Income + Non-Cash Expenses – Increase in Working Capital
Operating Cash flow = $16,890 + $2,550 - 0
Operating Cash flow = $19,440