Goodwill calculation in accounting principles doesn't have to be as hard as it sounds. There is a simple formula that will allow you to include all items and come out with the right result. Simply take the purchase price of assets, (which includes the cash and debt) and subtract several items. First, you need to subtract one to one assets which includes accounts receivable, cash, inventory on
. hand and prepaid items. Next, subtract intangible assets like favorable leases, pharmacy files, market area control, customer lists, and specialized work force items. Finally, subtract long term assets like investments, property, insurance, notes, etc. The end result equals your goodwill. Now wasn't that easy! For more information, visit http://www.allbusiness.com/retail-trade/food-stores/4267376-1.html.
