Prepare a statement of income, statement of cash flows, balance sheet
Ava After graduating with a diploma in business administration in Montreal, Ava got hired as an assistant to Frank, the director of operations at a local tech company. She has been working at the job for the past three months. Her role includes scheduling and attending meetings, sending emails, and booking travel and entertainment for visitors to the company headquarters in Montreal. She works part-time five days a week from 8 am to noon and is paid about $31,000 annually. During her free time, Ava volunteers as a cleaner for a not-for-profit organization called Keeping It Clean. The organization supports people with mental and physical disabilities by helping to keep their homes clean. The organization is run by donations made possible by large corporate donors, community partners, and volunteers like Ava. Although she enjoys the hustle and bustle of the corporate environment, Ava feels much more satisfied with her volunteer work with Keeping It Clean. Sensing that she may not be happy, Frank has offered Ava a full-time position with the company, upping her salary to $62,000 per year plus benefits. At the same time, due to her enthusiasm and great effort at Keeping It Clean, the President of the not-for-profit organization has offered her a position as Head Coordinator. This position would entail working more complex jobs and scheduling/coordinating the other volunteers within the organization. Even though Ava is excited about both offers, she has always wanted to pursue entrepreneurship. Hence, she is contemplating starting her own cleaning business. To kick things off, she has researched and gathered some numbers. Accounting was the worst subject in her diploma, so she seeks your help analyzing her options. Ava sees a trend of individuals getting busier and, consequently, needing more time or energy to keep their homes clean and organized. With her home cleaning/organizing business, she could help people maintain tidy and organized homes. Also, due to the pandemic, corporations and larger residential complexes seek more frequent cleaning to reduce pathogens, viruses, and bacteria. With the help of her parents, Ava has saved $7,500 to invest in her business. If she were to start her own housekeeping business, Ava forecasts these figures: For CloudBnB, Ava plans to find short-term rental property owners nearby and directly market her cleaning services. She has seen job postings for CloudBnBs located in Whistler. Although these would be far from home, they could offer lucrative profit opportunities. However, Ava knows that CloudBnB rentals depend on tourism and usually spike in the winter for the ski season and the summer for hiking. Ava estimates that she can generate some quick success in her first year based on her existing connections and some word-of-mouth marketing. She believes she can book 15 individual houses every week, five residential buildings, four corporate cleaning clients, ten special projects, and four consistent CloudBnB contracts in the summer and winter. She informs you that her ideal workweek includes 30 hours (including commuting). She wants to continue volunteering one day a week with Keeping It Clean. She wonders about her company's service mix and how it can maximize revenues through the work hours invested. She also wonders if charging per hour or on a per-project basis is better. Ava will need about $600
