Refer to the information in Exercise 20-36.

Data from Exercise 20-36

Williams Company is a manufacturer of auto parts having the following financial statements for 2018–2019.

Required

Develop a business valuation for Williams Company for 2019 using the following methods: (1) book value of equity, (2) market value of equity, (3) discounted cash flow (DCF), (4) enterprise value, and (5) all the multiples-based valuations for which there is an industry average multiplier. For the calculation of the DCF valuation, you may use the simplifying assumption that free cash flows will continue indefinitely at the amount in 2019.

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Balance Sheet December 31, 2019 2018 Cash $ 260,000 $ 135,000 Accounts receivable 150,000 225,000 Inventory 385,000 $ 795,000 1,640,000 $2,435,000 $ 200,000 175,000 $ 535,000 1,500,000 $2,035,000 $ 175,000 800,000 1,060,000 $2,035,000 Total current assets Long-lived assets Total assets Current liabilities Long-term debt Shareholders' equity Total debt and equity 900,000 1,335,000 $2,435,000