Question 1: Calculate the average profits
Information: Company has average profit had been: Please calculate the super profit: information / reference can be found on Method 2-3 on the notes.
2010: $130,000
2011: $150,000
2012: $ 200,000
2013: $ 250,000
2014: $ 300,000
2015: $320,000
2016: $400,000
Instructions: Please show the clear calculation and interpretation.
Question 2: Calculate Good will
information: company has average profits based on the question 1, normal rate of return is 20%, total assets $ 2,500,000 and liabilities 1,000,000. Calculate the good will