A group of people created a credit union. After several months of operations, it ran into financial problems and almost got bankrupt. Some members requested Mr. B, a rich businessman, to deposit capital into the credit union. Mr. B agreed in exchange for profit. The members agreed and at the end of the year, they gave part of the profit to him. In your opinion, was it against cooperative rules to give profit? If yes, why? If no, why not? Discuss your answer completely using the lessons taught in class.

Sailcloth & more currently produces boat sails and is considering expanding its operations to include awnings for homes and travel trailers. the company owns land beside its current manufacturing facility that could be used for the expansion. the company bought this land 5 years ago at a cost of $319,000. at the time of purchase, the company paid $24,000 to level out the land so it would be suitable for future use. today, the land is valued at $295,000. the company has some unused equipment that it currently owns valued at $38,000. this equipment could be used for producing awnings if $12,000 is spent for equipment modifications. other equipment costing $490,000 will also be required. what is the amount of the initial cash flow for this expansion project?