UR
A) Assets 120000
current liabilities 10,000
normal rate of return 8%
average profits 23800
Calculate value of goodwill on the basis of four years of purchase
of super profits.
B) What are the factors responsible for valuation of goodwill?
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Answer:
Factors Affecting the Value of Goodwill (7 Factors)
Locational Factor: If the firm is centrally located or located in a very prominent place, it can attract, more customers resulting in an increase in turnover. ...
Time Factor: ...
Nature of Business: ...
Capital Required: ...
Trend of Profit: ...
Efficiency of Management: ...
Other Factors:
Explanation:
Hope it help! :)
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