Short Answer 1 - 6 marks Richard runs a small automobile parts store where he specializes in providing parts for older cars. His company is called 'Re- Store Auto Parts' and he is the sole operator. When he started the company, he put $30,000 of his own money into the company and purchased s vehicles for $3,000 each that were not running but he could pull parts out of them to sell. The rest of the money went into rent for space to keep the parts and all other business operations. Richard needs to ensure that his financial transactions are recorded properly and he provides that information to his accountant. a) Considering Richard's situation, share and define the term we would use to describe his investment into his own company - 1 mark b) Define each and explain the difference between a balance sheet and a financial (income) statement as applied to Richard's company - 2 marks c) Explain the three main part of the balance sheet and apply it to Richard's company using the accounting equation - 3 marks Short Answer 2 - 6 marks A women's leadership association called, WE Women Empowered provides conferences, workshops and mentorship programs. Bonny, a university student, attended a workshop where a speaker made two statements and said "Personality and emotional intelligence are important in the development of young women leaders." The speaker also stated that, "Emotional intelligence is more important than IQ or intelligence quotient which is a measurement of intelligence." a) Explain what are empathy and social skills and describe how they might apply to emotional intelligence (2 marks) b) Analyze the statement, "Emotional intelligence is more important than IQ or intelligence quotient which is a measurement of intelligence.". Take a position on whether you agree or disagree with the statement. Explain your position. (1 mark) c) Define and explain personality. Describe how it might, or might not apply to your opinion in part b). (3 marks) Definition question - 4 marks Review the following terms - define them and share how they are related a) Define the following terms (5 each) Pension funds . Factoring companies Venture capital firms . Life insurance companies b) describe how they are all related and the common purpose they serve - 2 marks Calculation question - 7 Marks Jenny and Clare enjoy working with their hands and they found that they enjoyed woodworking and making cutting boards and cheese boards on the evenings and weekends. They decided to work together and create a company called "Wood Shop", which is a small sideline business. At first, they were not sure where they could start their business but then realized Jenny's parents own their own house and have a work shed that was not being used. Jenny's parents are allowing her to use it for $2,400 a year. The work shed is where she can store her equipment and wood. Jenny and Clare then had to buy the woodworking tools such as saws, sanders and clamps, and all the equipment cost was $2,500. Added to this, they created a website to sell their boards and the monthly charge for the website is $35. To be on the safe side, they also bought insurance for $15 a month in case someone broke in and stole their tools. They found that they could sell their cheese boards and cutting boards for $100 each. The wood would cost $40 and supplies to make each board was going to cost SIO. Another option was to go bigger and make coffee tables and desks. The workshop they were considering by Jenny's parents would be too small, so they thought about a place that is a shared wood shop, "Creative Work Space", a wood shop, has all the equipment already there and they rent out the space for people to come in to use their equipment to make their products, The rent at Creative Work Space', is $6.000 a year. The benefit here is that they would not need to buy any equipment and the insurance was included in the rent. They still needed to create a website and the monthly charge for the website is $35. With bigger projects like tables and desks, they needed larger pieces of wood. Now the wood would cost $80 dollars for each project but they could sell cach table or desk for $300. The supplies were not provided by Creative Work Space' so they would have a cost of S20 for the supplies for each desk or table they made Considering the details provided: a) Describe what is the purpose of break-even analysis and what is the formula - 1 mark b) Calculate the break-even point for the cheese and cutting board side of the business - 2 marks c) Calculate the break-even point for the coffee table and desk option of the business - 2 marks d) Based on the two calculations, provide your reasons on which option is better for Jenny and Clare - 2 marks Mini Case: Kitchen Helpers' is a kitchen appliance store where they sell new appliances such as fridges, stoves, dishwashers, ovens, etc. They have been fairly successful because they carry a range of prices from affordable simple units to more expensive higher end appliances. Also, because of their company not being a large company that sells huge volumes of appliances, they provide exceptional customer service and people are often recommending them to their friends. The new appliances come from a central warehouse who is their supplier and for example, "Kitchen Helpers will purchase a new fridge for $1,200 but then mark up the product to $2,000. Recently, with COVID-19, "Kitchen Helpers' is seeing a shift in their business. People are holding off on buying new appliances due to economic uncertainty, so they are holding off on moving or renovations. Added to this, the warehouse is finding it difficult to supply Kitchen Helpers' with new fridges due to COVID-19 challenges. Seeing this trend, "Kitchen Helpers" came up with an idea. What if they take in used appliances, refurbish them, and then sell them at a reduced rate? For example, if you were to buy a new fridge, it could cost you $2,000 but an older model that has been refurbished, could be about $800. Their business could shift from only new appliances to those looking for new and used. Often times, people are looking for both new and used. The new appliance goes into their main kitchen and the used one that is now fixed up would go into a basement suite. The benefit for *Kitchen Helpers' is that the used appliances are usually just given to them for about $200 because people want to replace an older appliance with a new one. a) Provide an understanding of what mark-up is and why they would mark up a product. Also, based on the figures in the question, share the mark-up% for- 3 marks A new fridge A used fridge b) Share a concept that can explain why there is a shortage of new fridges. Be sure to explain how and why it impacts their new appliance model. - 2 marks c) 'Kitchen Helpers provides products and services. They sell new and used appliances but also provide great customer service. Based on this. - 3 marks share the difference between service and manufacturing operations as applied to 'Kitchen Helpers'. What type of transformation technologies would apply to "Kitchen Helpers" used appliances area of business? d) Based on Kitchen Helper's model, define and share a corporate level strategy they can integrate for their used appliances area - 2 marks