Bill builder entered into a contract with carl's carpets to supply him with the carpeting he needed to complete the renovation of famous restaurant. when carl did not deliver the carpeting on the contract date, bill had to find similar carpeting from a different vendor for 5 a yard more than he would have paid to carl. there was a time is of the essence clause in bill's contract with famous restaurant. bill was to lose 300day for each day after the contract date that he was late in finishing the renovation. the 300 day represented the profit famous restaurant would lose each day it was not in operation. bill told carl about this clause, impressing on carl the need for him to deliver the carpet on time. bill finished the renovation three days after the contract date. the delay was due solely to carl's failure to deliver the carpet on time. bill can recover the 900 he lost from carl as damages.

Costco wholesale corporation operates membership warehouses selling food, appliances, consumer electronics, apparel and other household goods at 471 locations across the u.s. as well as in canada, mexico and puerto rico. as of its fiscal year-end 2005, costco had approximately 21.2 million members. selected fiscal-year information from the company's balance sheets follows. ($ millions). selected balance sheet data 2005 2004 merchandise inventories $4,015 $3,644 deferred membership income (liability) 501 454 (a) during fiscal 2005, costco collected $1,120 cash for membership fees. use the financial statement effectstemplate to record the cash collected for membership fees. (b) in 2005, costco recorded $46,347 million in merchandise costs (that is, cost of goods sold). record thistransaction in the financial statement effects template. (c) determine the value of merchandise that costco purchased during fiscal-year 2005. use the financial statementeffects template to record these merchandise purchases. assume all of costco's purchases are on credit.