1. Samira, a business law student, went to a well-known clothes shop to buy a pure (natural) silk shirt. She specifically told the shop-owner that she is allergic (sensitive) to (unnatural) silk and that she wants only natural silk. The shop owner then sold Samira a shirt telling her it is 100% natural and pure silk. A week after wearing the shirt Samira suffered from extreme allergic condition. Advise Samira as to her options.

2. Nora, the CEO of a company, was on a business trip for six days. During that time Jamal, who is Nora’s office manager, sold five tons of potato that were about to perish (expire) in the company’s warehouse for 75 % of their market price. When Nora returned she asked Jamal to compensate the company for the losses incurred by selling at that price. Can Nora do that? Why?

3. Khalid and Jasim had formed a Limited Partnership in which Jasim was a limited partner, while Khalid was a general partner. Each of them contributed 4 million AED to the capital. The Partnership suffered losses amounting to 10 million AED. What is the extent of Khalid’s liability for the losses? Why?

Tricky Ricky Construction Company, Inc., entered a fixed-price contract with Gracelyn Associates on July 1, 2021, to construct a four-story office building. At that time, Tricky Ricky estimated that it would take between two and three years to complete the project. The total contract price for construction of the building is $4,000,000. The building was completed on December 31, 2023. Estimated percentage of completion, accumulated contract costs incurred, estimated costs to complete the contract, and accumulated billings to Gracelyn under the contract were as follows:

Required:
1. Compute gross profit or loss to be recognized as a result of this contract for each of the three years. Tricky Ricky concludes that the contract does not qualify for revenue recognition over time.

2. Assuming Tricky Ricky recognizes revenue over time according to percentage of completion, compute gross profit or loss to be recognized in each of the three years

1.)

FIN3100 is expected to pay a dividend of $3.00 per share one year from today. FIN3100 required rate of return is r_s = 7%. If the expected growth rate is 5%, at what price should the stock sell?

B.)FIN3100 just paid a dividend of $6.00, i.e., D₀ = $6.00. The dividend is expected to grow by 100% during Year 1, by 50% during Year 2, and then at a constant rate of 7% thereafter. If Silva's required rate of return is r_s = 12%, what is the value of the stock today?

C.) FIN3100 doesn't pay any dividends and it has no plans to pay dividends in the near future. The pension fund manager has estimated FIN3100's free cash flows for the next 3 years as follows: $2.2 million, $2.7 million, and $4.9 million. After the third year, free cash flow is projected to grow at a constant 6%. Calvert's WACC is 10%, the market value of its debt and preferred stock totals $11 million, and it has 2 million shares of common stock outstanding. What is an estimate of FIN3100's price per share?

Prepare the general journal entries:

1) June 1 : Purchase supplies on account, $500.

2) June 3: Purchase 200 units of inventory with cash.

3) June 5: Provide 30 hours of services to customers for cash (calculate using your hourly service rate).

4) June 9: Sell 200 units of inventory on account.

5) June 12: Sell 50 units of inventory to a customer on account with a sales discount of 2/10, n/30.

6) June 14: Purchase an additional 100 units of inventory on account.

7) June 20: The customer who purchased product on June 12th pays the amount due (within discount period).

8) June 22: Receive cash in advance for 15 hours of services to be completed in the future.

9) June 27 : Sell 200 units of inventory to a customer who signs a 6 month promissory note at 10% interest for the balance due.

10) June 30: Pay employee salaries, $1,000.

11) June 30: Pay cash dividends to shareholders, $600.

Service Price= $80.00

Sales Price= $65.50

Inventory Cost= $25.00

On December 31, 2015, Berclair Inc. had 600 million shares of common stock and 17 million shares of 9%, $100 par value cumulative preferred stock issued and outstanding. On March 1, 2016, Berclair purchased 120 million shares of its common stock as treasury stock. Berclair issued a 6% common stock dividend on July 1, 2016. four million treasury shares were sold on October 1. Net income for the year ended December 31, 2016, was $850 million.

Also outstanding at December 31 were incentive stock options granted to key executives on September 13, 2011. The options were exercisable as of September 13, 2015, for 72 million common shares at an exercise price of $60 per share. During 2016, the market price of the common shares averaged $90 per share.

The options were exercised on September 1, 2016.

Required:
Compute Berclair’s basic and diluted earnings per share for the year ended December 31, 2016. (Enter your answers in millions (i.e., 10,000,000 should be entered as 10).)

On December 31, 2017, Berclair Inc. had 360 million shares of common stock and 12 million shares of 9%, $100 par value cumulative preferred stock issued and outstanding. On March 1, 2018, Berclair purchased 40 million shares of its common stock as treasury stock. Berclair issued a 5% common stock dividend on July 1, 2018. Four million treasury shares were sold on October 1. Net income for the year ended December 31, 2018, was $600 million.

Also outstanding at December 31 were 60 million incentive stock options granted to key executives on September 13, 2013. The options were exercisable as of September 13, 2017, for 60 million common shares at an exercise price of $60 per share. During 2018, the market price of the common shares averaged $80 per share.

The options were exercised on September 1, 2018.

Required:

Compute Berclair’s basic and diluted earnings per share for the year ended December 31, 2018.

Following Format to use for answer

                             Numerator      /    Denominator      =   Earnings Per Share

Basic EPS

Diluted EPS

On December 31, 2020, Berclair Inc. had 250 million shares of common stock and 10 million shares of 9%, $100 par value cumulative preferred stock issued and outstanding. On March 1, 2021, Berclair purchased 90 million shares of its common stock as treasury stock. Berclair issued a 4% common stock dividend on July 1, 2021. Four million treasury shares were sold on October 1. Net income for the year ended December 31, 2021, was $500 million.

Also outstanding at December 31 were 45 million incentive stock options granted to key executives on September 13, 2016. The options were exercisable as of September 13, 2020, for 45 million common shares at an exercise price of $50 per share. During 2021, the market price of the common shares averaged $75 per share. The options were exercised on September 1, 2021.

Required: Compute Berclair’s basic and diluted earnings per share for the year ended December 31, 2021. (Enter your answers in millions (i.e., 10,000,000 should be entered as 10). Do not round intermediate calculations.)

On December 31, 2017, Berclair Inc. had 400 million shares of common stock and 14 million shares of 9%, $100 par value cumulative preferred stock issued and outstanding. On March 1, 2018, Berclair purchased 120 million shares of its common stock as treasury stock. Berclair issued a 6% common stock dividend on July 1, 2018. Four million treasury shares were sold on October 1. Net income for the year ended December 31, 2018, was $700 million.

Also outstanding at December 31 were 63 million incentive stock options granted to key executives on September 13, 2013. The options were exercisable as of September 13, 2017, for 63 million common shares at an exercise price of $60 per share. During 2018, the market price of the common shares averaged $70 per share.

The options were exercised on September 1, 2018.

Required:

Compute Berclair’s basic and diluted earnings per share for the year ended December 31, 2018. (Enter your answers in millions (i.e., 10,000,000 should be entered as 10).)