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.

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

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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.)

  
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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.

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.

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 0.10 significance level: H₀: ρ ≤ 0; H₁: ρ > 0. (Round your answer to 3 decimal places.)

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

3. c-3. Is it reasonable to conclude that there is a positive relationship between revenue and occupied rooms? Use the 0.10 significance level.

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 Income Occupied Day Income Occupied 1 $ 1,452 20 14 $ 1,425 31 2 1,361 20 15 1,445 51 3 1,426 21 16 1,439 62 4 1,470 80 17 1,348 45 5 1,456 70 18 1,450 41 6 1,430 29 19 1,431 62 7 1,354 70 20 1,446 47 8 1,442 21 21 1,485 43 9 1,394 15 22 1,405 38 10 1,459 36 23 1,461 36 11 1,399 41 24 1,490 30 12 1,458 35 25 1,426 65 13 1,537 51 PictureClick here for the Excel Data File Use a statistical software package to answer the following questions.

b. Determine the coefficient of correlation between the two variables. (Round your answer to 3 decimal places.) Pearson correlation State the decision rule for 0.01 significance level: H0: ρ ≤ 0; H1: ρ > 0 (Round your answer to 3 decimal places.) Reject H0 if t > Compute the value of the test statistic. (Round your answer to 2 decimal places.) Value of the test statistic

c. Is it reasonable to conclude that there is a positive relationship between revenue and occupied rooms? Use the 0.01 significance level. H0, There is a between revenue and occupied rooms.

d. 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.) % of the variation in revenue is explained by variation in occupied rooms.

Section B:

Using the financial statements of XYZ Furnishings (below), comment on your interpretation of the financial health of the company.

There is a maximum of 10 marks available for this section, four marks for your knowledge and understanding of the financial statements, four marks for your analysis and evaluation and 2 marks for your communication.

The Donahoo Western Furnishings Company was formed on December 31, 2014 with $1,000,000 in equity plus $500,000 in long-term debt. On January 1, 2015, all of the firm's capital was held in cash. The following transactions occurred during January 2015:

January 2: Donahoo purchased $1,000,000 worth of furniture for resale. It paid $500,000 in cash and financed the balance using trade credit that required payment in 60 days.

January 3: Donahoo sold $250,000 worth of furniture that it had paid $200,000 to acquire. The entire sale was on credit terms of net 90 days.

January 15: Donahoo purchased more furniture for $200,000. This time, it used trade credit for the entire amount of the purchase, with credit terms of net 60 days.

January 31: Donahoo sold $500,000 worth of furniture, for which it had paid $400,000. The furniture was sold for 10% cash down, with the remainder payable in 90 days. In addition, the firm paid a cash dividend of $100,000 to its stockholders and paid off $250,000 of its long-term debt.

Submit answers to the 4 questions below.

1. Prepare Donahoo's balance sheet as of December 31, 2014.

2. What did the balance sheet look like after each of the transactions in January?

3. Ignoring taxes, calculate the income Donahoo earned during January. Prepare an income statement for the month. Recognize an interest expense of 1% for the month (12% annually) on the $500,000 long-term debt, which has not been paid, but is owed.

4. What was Donahoo's cash flow for the month of January.

Classique Household Furnishings & Appliances is a family-owned furniture store. You are the management accountant of the concern and have been given the task of preparing the cash budget for the business for the quarter ending September 30, 2018. Your data collection has yielded the following

Extracts from the sales and purchases budgets are as follows:

Cash Sales

$50,000 $65.000 $43,400 $52,800 $56,750

Sales Purchases On Account On Account

$480,000 $600,000 $720,000

$640,000

$800,000

$390.000 $360,000 $450,000 $400,000

$500,000

Month

May

June

July August September

An analysis of the records shows that trade receivables (accounts receivable) for sales on account are settled according to the following credit pattern, in accordance with the credit forms 5/30, n90:

50% in the month of sale 35% in the first month following the sale 15% in the second month following the sale

Accounts payable are settled as follows, in accordance with the credit forms - 4/30, n60 70% in the month in which the inventory is purchased 30% in the following month

Monthly rental is received from a tenant for storage space rental to him by Classique Household Furnishings & Appliances. The rental is $840,000 per annum and is received quarterly in advance

Rental relating to the quarter under review becomes due on July 1.

Computer equipment, which is estimated to cost $350,000, will be acquired for cash in August The manager has made arrangements with the seller to make a cash deposit of 50% of the amount upon signing of the agreement in August with the balance to be settled in four equal monthly instalments, starting in September 2018.

An investment instrument purchased by the company with a face value of $480,000 will mature on July 20, 2018 and will be liquidated on that date. At the same time, quarterly interest computed at a rate of 8% % per annum will also be collected.

Fixed operating expenses, which accrue evenly throughout the year are estimated to be $1,920.000 per annum including depreciation on non-current assets of $42,000 per month and are settled monthly

i)

iv)

vi)

vii)

viil)

Wages and salaries are expected to be $2,304,000 per annum and will be paid monthly

Other operating expenses are expected to be $144,000 per quarter and are settled monthly

In the month of August, furniture & fixtures, which cost $455,000, will be sold to an employee at a Inss of $20.000. Accumulated depreciation on the furniture & fixtures at that time is expected to be $305,000. The employee will be allowed to pay a deposit equal to 60% of the selling price in