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Problem 3: Goodwill calculation - Weighted Average Profits method] The trading profits of a company for the past 4 years were as follows: Year ended

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Problem 3: Goodwill calculation - Weighted Average Profits method] The trading profits of a company for the past 4 years were as follows: Year ended Dec 31, 2015 - Dhs. 120,000: 2016 - Dhs. 136.000; 2017 - Dhs. 164.000: 2018 - Dhs. 172,000. Standard rate of return for this type of business is 8%. Calculate the value of goodwill at three years purchase of average super profits for the four years. Assume the weights assigned to profits are as follows: 2015: 1 2016: 1.5 2017: 2 2018: 2.5

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