Q-Constructions has tasked you to investigate the number of construction projects per year for which the company would need to break-even and make a profit of $500,000 per year. The average price of a building contract is $700,000 per project. The following are the fixed and variable costs of Q-Constructions in Table 2:

Table 2: Associated Costs of Q-Constructions

Use this information above to complete the requested analyses below.

1. (5 marks) Calculate:
   1. The break-even number of projects needed by the company.
   2. The income made by the company at break-even.

Show all working out including the modelling and solution steps.

2. (3 marks) Q-Constructions is interested in making a profit per year to ensure the company has a positive financial outlook and new ventures can be done in the future. Calculate how many projects per year need to be completed to make a profit of $500,000 per year.
3. (6 marks) Q-Constructions workers’ have approached the building union and been informed they could be paid a higher salary and want their salaries to be determined based on a percentage of the project price. The company has reviewed their historical records on the number of projects per year and has made the decision to respect the workers’ demands and notice that the company would maintain a positive financial outlook if they set their break-even target at 4 projects per year. Determine the new salary percentage for the onsite workers’ on a project price based on the company’s average project price and associated costs in Table 2.

4. (3 marks) Based on the new on-site workers’ cost per project from part (c), calculate the new number of projects that need to be completed to maintain a profit of $500,000 per year.
5. (3 marks) Due to the change in the on-site workers’ salaries, what is the effect on contribution margin in relation to the variable cost? Explain the effect of this change on the break-even number in part (a).  

Hint! Your discussion should focus on the impact made by the contribution margin. You can show the calculation of the contribution margin to support your discussion, but no other calculations should be used.

6. (4 marks) In Excel, produce a break-even graph for Q-Constructions and include it here – you will also include a copy in the infographic where requested.

There will be 3 lines on the Q-Constructions Break-Even graph: one for total revenue for Q-Constructions and two representing the original total cost and the new total cost for Q- Constructions.

On the graph, identify the general regions corresponding to profits and losses. The units along the x-axis will be the number of projects. The units along the y-axis gives the revenue in dollars.

Excel Instructions:

1. Create a column called Number of Projects and enter values from 0 to 20 in single unit increments for Q-Constructions analysis. This column plays the role of ‘x’ in break-even calculations.

2. Create four more columns: Total Original Cost, Total New Cost, Total Revenue, Total Profit and add your initials to these column names. In each of these columns, enter appropriate formulae in EXCEL to obtain the total cost and total revenue corresponding to each value in the Number of Projects column.

3. Highlight all the columns and go to Insert  Charts Scatter to obtain a graph. Label the graph appropriately (i.e. title, axis labels, legend) and ensure the chart title includes your network ID (the part of your email address before @ e.g. [email protected] has the network ID jbloggs).

TOTAL 24 MARKS

Currency analysis of Merck & Co.

Why you can say Euro and Yen are exposed to the company. This can be due to its business structure (i.g. location of factories, customers and suppliers, and the currency that the products/services are quoted), and arising from the competition against its rivals.

State references.

Complete an external environmental analysis for the company uber that considers the following factors. Note: This analysis must be done before you can complete the actual assignment below.

Laws and regulations

Economy

Technology

Demographics

Social issues

Suppliers

Competitors

New entrants

Substitutes and complements

Customers

Doyle Company issued $480,000 of 10-year, 5 percent bonds on January 1, Year 2. The bonds were issued at face value. Interest is payable in cash on December 31 of each year. Doyle immediately invested the proceeds from the bond issue in land. The land was leased for an annual $57,000 of cash revenue, which was collected on December 31 of each year, beginning December 31, Year 2.

Required
a. Organize the transaction data in accounting equation for Year 2 and Year 3. (Enter any decreases to account balances with a minus sign. Select "NA" if there is no effect on the "Accounts Titles for Retained Earnings".)

b. Prepare the income statement, balance sheet, and statement of cash flows for Year 2 and Year 3.

A suburban hotel derives its revenue from its hotel and restaurant operations. The owners are interested in the relationship between the number of rooms occupied on a nightly basis and the revenue per day in the restaurant. Below is a sample of 25 days (Monday through Thursday) from last year showing the restaurant income and number of rooms occupied.

1. Choose the scatter diagram that best fits the data.

• Scatter diagram 1

• Scatter diagram 2

• Scatter diagram 3

2. Determine the coefficient of correlation between the two variables. (Round your answer to 3 decimal places.)

1. c-1. State the decision rule for 0.01 significance level: H₀: ρ ≤ 0; H₁: ρ > 0. (Round your answer to 3 decimal places.)

1. c-2. Compute the value of the test statistic. (Round your answer to 2 decimal places.)

1. c-3. Is it reasonable to conclude that there is a positive relationship between revenue and occupied rooms? Use the 0.01 significance level.

4. What percent of the variation in revenue in the restaurant is accounted for by the number of rooms occupied? (Round your answer to 1 decimal place.)

A suburban hotel derives its revenue from its hotel and restaurant operations. The owners are interested in the relationship between the number of rooms occupied on a nightly basis and the revenue per day in the restaurant. Below is a sample of 25 days (Monday through Thursday) from last year showing the restaurant income and number of rooms occupied. Day Revenue Occupied Day Revenue Occupied 1 $ 1,452 32 14 $ 1,425 29 2 1,361 30 15 1,445 31 3 1,426 33 16 1,439 33 4 1,470 33 17 1,348 30 5 1,456 33 18 1,450 34 6 1,430 29 19 1,431 30 7 1,354 29 20 1,446 30 8 1,442 30 21 1,485 30 9 1,394 32 22 1,405 32 10 1,459 30 23 1,461 32 11 1,399 33 24 1,490 32 12 1,458 31 25 1,426 33 13 1,537 34

Click here for the Excel Data File

Choose the scatter diagram that best fits the data.

Scatter diagram 1 Scatter diagram 2 Scatter diagram 3

Scatter diagram 1 Scatter diagram 2 Scatter diagram 3

Determine the coefficient of correlation between the two variables. (Round your answer to 3 decimal places.)

c-1. State the decision rule for 0.05 significance level: H0: ρ ≤ 0; H1: ρ > 0. (Round your answer to 3 decimal places.)

c-2. Compute the value of the test statistic. (Round your answer to 2 decimal places.)

c-3. Is it reasonable to conclude that there is a positive relationship between revenue and occupied rooms? Use the 0.05 significance level. What percent of the variation in revenue in the restaurant is accounted for by the number of rooms occupied? (Round your answer to 1 decimal place.)

The adjusted trial balance of CHO company appears below. Using the information from the adjusted trial balance, you are to prepare for the month ending December 31, a statement of financial position.

CHO company

Adjusted Trial Balance

December 31, 2018

                                                                                                                    Debit         Credit

Cash .................................................................................................. SAR 4,400

Accounts Receivable.........................................................................          2,200

Office Supplies..................................................................................          1,800

Office Equipment..............................................................................        15,000

Accumulated Depreciation—Office Equipment...............................                        SAR 4,000

Accounts Payable..............................................................................                       3,800

Unearned Revenue............................................................................                       5,000

Share Capital–Ordinary.....................................................................                     10,000

Retained Earnings..............................................................................                       4,400

Dividends .........................................................................................          2,500

Service Revenue................................................................................                       3,700

Office Supplies Expense...................................................................             600

Depreciation Expense........................................................................          2,500

Rent Expense.....................................................................................          1,900 ______

                                                                                                                      30,900             30,900

Chapter 3 – Problem PB3-4 Modified

Please answer the entire 8 steps of this question

PB3-4     Analyzing, JournaIizing and Interpreting Business Activities (LO 3-3, 3-5 & then some) -

The following items present a sample of business activities involving Dry Cleaner Corporation (DCC) for the year ended December 31^st. DCC provides cleaning services for individual customers and for employees of several large companies in the city.

Dec 1: DCC’s owner paid $10,000 cash to acquire 200 of DCC’s common shares.

Dec 2: DCC borrows $2,000 cash from BofA and signs a promissory note to repay the

principal and interest at 1% per annum on December 1, 2018.

Dec 3: DCC ordered cleaning supplies at a total cost of $2,000. The supplies are

expected to be received in early January.

                  Dec 4: DCC paid $1,500 cash to its landlord which consisted of December’s Rent of

                                                      $1,000 and a Security Deposit of $500.

Dec 7: Customers paid $200 cash to DCC to obtain DCC gift cards that they could use to

                                    obtain future cleaning services at no additional cost.

Dec 15: Customers paid $1,000 cash to DCC for cleaning services performed during the

first two weeks of December.

Dec 21: DCC ran advertising in the local newspaper today at a total cost of $500. DCC is

not required to pay for the advertising until January 21^st.

                  Dec 22: DCC paid $1,000 to the landlord for January rent.

                  Dec 23: DCC’s owner sold 20 of his own DSS common shares to a private investor, at a

selling price of $1,200.

                  Dec 28: DCC paid in full for the advertising run in the local newspaper on December 21^st.

                  Dec 29: The cleaning supplies ordered on December 3^rd were received today. DCC does

not have to pay for these supplies until January 29^th.

Dec 31: Today, DCC completed cleaning services for several large companies at a total price of $2,000. The companies are expected to pay for the services by January 31^st.

Required:

1.Analyze transactions Dec. 1^st thru Dec. 31st to determine their effects on the accounting equation, if any . Once you have determined the effects on the accounting equation prepare a journal entry (Hint – debits first and credits second). Use the format shown below.

2.Post your journal entries in Part 1 above to the T-Accounts. Use the format shown below.

3.Carryforward account balances from Part 2 to the worksheet for Part 3 – show account balances, indicated account type (i.e. asset, liability, equity, revenue or expense), does the account have a debit or credit balance and which financial statement does this account appear on (i.e. Income Statement, Statement of Retained Earnings or Balance Sheet)?

Part 3 - *Limited to Income Statement (I/S), Statement of Retained Earnings (SRE) & Balance Sheet (B/S)

4.Prepare a Trial Balance at 12/31/2017.

5.Prepare an Income Statement, Statement of Retained Earnings and a classified Balance Sheet.

6.What was the source of the company’s financing – Debt or Equity – show your work?

7.Prepare the Current Ratio and the Quick Ratio (aka Acid Test). Are the ratios good or bad? What standard did you use? New – Net Profit Ratio – compute.

8.Why could the financial statements be inaccurate? Hint - See Chapter 4 Topics for some ideas. Give a couple reasons.

Problem 3-04A

A review of the ledger of Gina Company at December 31, 2020, produces the following data pertaining to the preparation of annual adjusting entries.

Prepare the adjusting entries at December 31, 2020. (Credit account titles are automatically indented when the amount is entered. Do not indent manually.)

1. A cosmetic product retailer needs to create a database to keep track of the information for its business operations. The company has a web site that posts all its products. The product information includes product ID, product name, description, and unit price. The company also needs to keep track of customers’ information, including customer names, their shipping addresses, and the email address. The company creates an account for each customer for identification and tracking purpose. A customer can purchase multiple products with different quantities in one order. The company’s products have many prospective customers. The company needs to keep track of information for all orders it received, including the order date, invoice number, and information about products purchased in an order such as IDs of products, and quantities, etc. Company’s products are stocked in several warehouses. So company also needs to keep track of the information about each warehouse such as its name, address, manager, telephone, etc. a. Create an E/R model for this scenario. In your E/R model you need to show the names of entities, names of attributes, keys and the name(s) of relationship(s). Also indicate maximum and minimum cardinalities You may hand-draw the ER model and insert its image here.