As the president of Concord Wineries Corp. you are considering purchasing Grimsby Wine Accessories Limited, whose statement of financial position is summarized as follows: Current assets $ 241.200 Current liabilities 5207.800 Plant and equipment (net) 839,300 Long-term liabilities 549.000 Other assets 279.000 Common shares 422000 Retained earnings 180,900 Total $1.359.500 Total $1.359.500 The current assets fair value is $76,000 higher on their carrying amount because of inventory undervaluation. All other assets and liabilities have book values that approximate their fair value. The normal rate of return on net assets for the industry is 15% The expected annual earnings for Grimsby are $137.000 Click here to view the factor table PRESENT VALUE OF 1. Click here to view the factor table PRESENT VALUE OF AN ANNUITY OF 1. Assuming that the excess earnings are expected to continue for 5 years, how much would you be willing to pay for goodwill, and for the company? Estimate goodwill by the present value method (Round factor values to 5 decimal places, s 125129 and round answers to decimal places, eg: 5.275.) Assuming that the excess earnings are expected to continue for 5 years, how much would you be willing to pay for goodwill, and for the company Estimate goodwill by the present value method. (Round factor values to 5 decimal places, eg. 1.25124 and round answers to decimal places, eg. 5,275.) Concord Wineries Corp. pay for goodwill Concord Wineries Corp. pay for Company $ Current Attempt in Progress As the president of Concord Wineries Corp. you are considering purchasing Grimsby Wine Accessories Limited, whose statement of financial position is summarized as follows: $ 241,200 Current liabilities $ 207,600 Current assets Plant and equipment (net) Other assets 839,300 Long-term liabilities 549.000 279,000 Common shares 422.000 Retained, warnings 180.900 Total $1,359.500 Total $1.359.500 The current assets'fair value is $76,000 higher than their carrying amount because of inventory undervaluation. All other assets and liabilities have book values that approximate their fair value. The normal rate of return on net assets for the industry is 15%. The expected annual earnings for Grimsby are $137.000. The current assets' fair value is $76,000 higher than their carrying amount because of inventory undervaluation. All other assets and liabilities have book values that approximate their fair value. The normal rate of return on net assets for the industry is 15%. The expected annual earnings for Grimsby are $137,000. Click here to view the factor table PRESENT VALUE OF 1. Click here to view the factor table PRESENT VALUE OF ANNUITY OF 1. UITY OF 1. Assuming that the excess earnings are expected to continue for 5 years, how much would you be willing to pay for goodwill, and for the company? Estimate goodwill by the present value method. (Round factor values to 5 decimal places, eg. 1.25124 and round answers to o decimal places, e.g. 5,275.) $ Concord Wineries Corp. pay for goodwill $ Concord Wineries Corp. pay for Company
