$ 16.00
$ 18.23
$ 17.68
$ 15.57
Which one of the following is a source of cash?
Granting credit to a customer
Purchase of inventory
Acquisition of debt
Payment to a supplier
Repurchase of common stock
Nadine’ s Home Fashions has $ 2.12 million in net working capital. The firm has fixed assets with a book value of $ 31.64 million and a market value of $ 33.9 million. The firm has no long-term debt. The Home Centre is buying Nadine’ s for $ 37.5 million in cash. The acquisition will be recorded using the purchase accounting method. What is the amount of goodwill that The Home Centre will record on its balance sheet as a result of this acquisition?
$ 5.86 million
$ 3.34 million
$ 4.14 million