Use the Information Below to Answer the Following Question(s)

question 77

Multiple Choice

Use the information below to answer the following question(s) .The following information is for Winnie Company:

-Fan Inc.is a nonprofit organization that supplies fans during the summer for individuals in need.Fixed costs are $500,000.The fans cost $40.00 each.The organization has a budgeted appropriation of $1,200,000.How many people can receive a fan during the summer?

• A)15,000 people
• B)17,500 people
• C)30,000 people
• D)42,500 people
• E)80,000 people

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Definitions:

Cash Flow

The total amount of money being transferred into and out of a business, especially as affecting liquidity.

Financing Activities

Transactions and events that affect the equity and long-term liabilities of a company, reflecting how it raises funds and repays its investors.

Operating Activities

Activities that relate to the primary operations of a company, such as selling products or services and administrative expenses.

Taxes

Compulsory charges imposed by governments on individuals or entities to fund public services and infrastructure.