Question
Summaries are shown below of various businesses balance sheets. (If there is one) which companies do you believe have purchased an additional company previously? Explain
Summaries are shown below of various businesses balance sheets. (If there is one) which companies do you believe have purchased an additional company previously? Explain your reasoning.
Joes Hardware:
Cash: $250,000, Liabilities: $500,000, Goodwill: $500,000, Property, plant, and equipment: $1,000,000, Accounts Receivable: $75,000
Sunnys Supplies:
Cash: $300,000, Liabilities: $0, Goodwill: $300,000, Property, plant, and equipment: $350,000, Accounts Receivable: $0
Rodwell Electronics:
Cash: $0, Liabilities: $0, Goodwill: $0, Property, plant, and equipment: $350,000, Accounts Receivable: $100,000
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