Examine Note 3 to MWW’s financial statements (page A-52). The following questions pertain to MWW’s purchase of franchise stores in fiscal 2001.

a. How many franchise stores did MWW buy in fiscal 2001?

b. What was the purchase price for these stores? How much of the purchase price was paid in cash? (You should be able to determine the amount from two places in the financial statements and notes.)

c. On the date the franchise stores were purchased, what amounts of cash, other current assets, capital assets, and liabilities were obtained? Do you think that these amounts are the same as the amounts that were reported on the individual stores’ balance sheets? Explain.

d. How much of the cost of the franchise store purchases was attributed to goodwill? What do you think the goodwill was for? (Tie your explanation to the specifics of the entities purchased. Do not give a general answer.)