The Data Above Shows the Net Working Capital Requirements for Blunderstone

question 3

Multiple Choice

The data above shows the net working capital requirements for Blunderstone Shoes,a company that makes waterproof boots.All figures are in thousands of dollars.What are Blunderstone's temporary working capital requirements in the third quarter?

• A)$2,700,000
• B)$3,400.000
• C)$5,450,000
• D)$6,100,000

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Definitions:

Fair-Value Method

Fair-Value Method is an accounting approach where assets and liabilities are recorded at their current market value, reflecting potential changes over time.

Goodwill

Goodwill is an intangible asset that arises when a company acquires another company for a price higher than the fair value of its net identifiable assets and liabilities at the acquisition date.

Book Value

The net value of a company's assets found on its balance sheet, calculated as total assets minus intangible assets and liabilities.

Goodwill

An intangible asset that arises when a business is acquired for more than the fair value of its net assets, reflecting the value of the business's brand, customer relationships, and other unquantifiable assets.