47) The king Mattress Company

The King Mattress Company had the following operating results for 20182019, In addition, the company paid dividends in both 2018 and 2019 of $67800 per year and made capital expenditures in both years of $30,000 per year The company's stock price in 2018 was $8 and $7 in 2019. The Industry average earnings multiple for the mattress industry was 9 in 2019 and the free cash flow and sales multiples were 18 and 195, respectively. The company is publicly owned and has 1,900,000 shares of outstanding stock at the end of 2019. Balance Sheet, Dec 31, 2619 2618 Cash $ 366,666 $ 126,666 Accounts Receivable $ 376,666 $ 426,666 Inventory $ 276,666 $ 326,666 Total Current Assets $1,618,666 $ 878,666 Long-lived Assets 1,346,666 1,366,666 Total Assets $2,358,666 $2,238,666 Current Liabilities $ 226,666 $ 326,666 Long-term Debt 626,666 526,666 Shareholder Equity 1,566,666 1,386,666 Total Debt and Equity $2,358,666 $2,238,666 I Income Statement, For year' ended Dec 31, 2619 2618 Sales $4,886,666 $4,636,666 Cost of Sales 4,264,666 4,164,666 Gross Margin 676,666 526,666 Operating Expenses 363,666 413,666 Operating Income 313,666 113,666 Taxes 125,266 45,266 Net Income $ 187,866 3 67,866 Income Statement, For year ended Dec 31, 2619 2018 Sales $4,889,999 $4,630,666 Cost O'F Sales 4,204,660 4,164,666 Gross Margin 676,660 526,006 Operating Expenses 363,660 413,999 Operating Income 313,660 113,066 Taxes 125,260 45,266 Net Income $ 187,866 $ 67,866 | Cash Flow From Operations 2619 2618 Net Income $ 187,866 $ 67,866 Plus Depreciation Expense 56,666 56,666 + Decrease (~inc) in AccRec. and Inv. 166,666 ~ + Increase (-dec) in Cur. Liabl. (166,666) Cash Flow From Operations $ 237,866 $117,866 The value ofthe company, calculated using the free cash flow multiple for 2019 is