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3 years ago

Goodwill is:

Business

1 answer:

polet [3.4K]3 years ago

3 0

Answer:

The correct answer is The value of a business as a whole, over and above the value of its net identifiable assets.

Explanation:

Goodwill is an intangible asset that reflects the connections of a customer service business, reputation and other similar factors.

It shows the value of a company's reputation, which can affect its market situation, both positively and negatively.

If it affects positively, it is called goodwill. This is a fixed asset, an element of the company with prolonged value, not generally intended for sale.

However, goodwill can be characterized as something that can generate future profits for the company.

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RATIO CALCULATIONS Assume the following relationships for the Caulder Corp.: Sales/Total assets 1.7x Return on assets (ROA) 7% R

garik1379 [7]

Answer:

4.12%
46.15%

Explanation:

1. The Return on Assets can be calculated by;

Return on assets = Profit margin * Assets turnover

So,

Profit Margin = Return on Assets/ Assets Turnover

= 7%/1.7

= 4.12%

2. The amount of debt in the company is the capital less equity and the Percent of Equity in the company is;

= Return on Assets / Return on Equity

= 7% / 13%

= 53.85%

Debt - to - Capital = 1 - 53.85%

= 46.15%

6 0

3 years ago

The following account balances were drawn from the financial statements of Grayson Company: Cash $ 5,000 Accounts payable $ 1,55

Anestetic [448]

Answer:

The balance of Common Stock for Grayson Company is $8,300

Explanation:

For computing the common stock value, first we have to compute the ending retained earning balance which is shown below

= Beginning retained earning balance + revenues - expenses

= $3,300 + $10,100 - $7,550

= $5,850

Thus, the ending balance is $5,850

Now by applying the accounting equation we can compute the common stock value

Accounting equation is equals to

Assets = Liabilities + Equity

where,

Assets = Cash + Accounts receivable + Land

= $5,000 + $2,100 + $8,600

= $15,700

Liabilities = Accounts payable = $1,550

And, Equity = Ending Retained earnings balance + common stock

= $5,850 + common stock

Now, apply the above accounting equation which is shown below:

$15,700 = $1,550 + $5,850 + common stock

$15,700 = $7,400 + common stock

So, common stock = $8,300

Hence, the balance of Common Stock for Grayson Company is $8,300

4 0

4 years ago

The lack of competition within a monopoly means that

makkiz [27]

It means that the goods and services are offered are lacking in vitality, force or conviction

hope i helped:)

3 0

3 years ago

An analysis and aging of the accounts receivable of Raja Company at December 31 reveal the following data:

rodikova [14]

Answer:

The cash (net) realizable value of the accounts receivable is accounts receivable less the ending balance in the Allowance for Doubtful Accounts.

800,000 - 65,000

This brings the total to $735,000.

5 0

3 years ago

The following facts relate to Duncan Corporation.

lyudmila [28]

Answer:

Duncan Corporation

a. The amount of the accounting income for 2019 is:

= $270,000

b. Journal Entries:

Debit Income tax expense $46,000

Credit Income tax payable $46,000

To record the income tax expense for 2019.

Debit Deferred tax asset $30,000

Credit Profit and Loss $30,000

To record the deferred tax asset

Debit Profit and Loss $80,000

Credit Deferred tax liability $80,000

To record the deferred tax liability.

Explanation:

a) Data and Calculations:

Taxable income for 2019 = $115,000

add Cumulative temporary difference, giving

rise to future taxable amounts = $250,000

less Cumulative temporary difference, giving

rise to future deductible amounts = $95,000

Accounting income for 2019 $270,000

Income tax expense:

Taxable income = $115,000

Tax rate (40%) 46,000

After-tax income $69,000

6 0

3 years ago