Calculate the super profit using given data

Reference no: EM132067253

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

Reference no: EM132067253

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