C3-80. (Learning Onts Adjust the construct the financial state, Gardner Advertising, Inc. since it began ten years ago. Recently, Gardner mentioned that the trial balance, which follows. Revenues and expenses vary little from month to months, but Assume that you are interested in buying this business. You obtain its most recent is a typical month. Your investigation reveals that the trial balance does not include the effe of monthly revenues of $4.000 and expenses totaling S1,100. If you were to buy Gardner C3-81. Blue Vistas Energy Co. is in its third year of operations, and the company has grow To expand the business, Blue Vistas borrowed $15 million from Bank of Forest Lake. As a evaluate a business based on financial statements) Teresa Gardner has owned and Advertising, you would hire a manager so you could devote your time to other duties. Asume 196 Chapter 3 LO 3.4 ng de would selling the company for F that your manager would require a monthly salary of $5,000 Gardner Advertising, Inc. Trial Balance June 30, 2018 $ 12.000 6.900 3,200 158,000 125.000 $ 81.500 13.30 1 2 Cash 3 Accounts receivable 4 Prepaid expenses 5 Land 6. Plant assets 7 Accumulated depreciation plant assets 8 Accounts payable 9 Salary payable 10 Unearned advertising revenue 11 Common stock 12 Retained earnings 13 Dividends 14 Advertising revenue 15 Rent expense 16 Salary expense 17 Utilities expense 18 Depreciation expense plant assets 19 Supplies expense 20 Total 21 58.700 50.000 93.000 9.000 22.000 4.000 900 $319,000 $319.000 Requirements 1. Assume that the most you would pay for the business is 16 times the amount of monthly net income you could expect to earn from it. Calculate this possible price. 2. Gardner states that the least she will take for the business is two times its stockholders equity on June 30. Calculate this amount. 3. Under these conditions, how much should you offer Gardner? Give your reason. (Challenge Ethical Issues condition for making this loan, the bank required that at least 1.50 and a debt ratio of min