Cash Balance Sheet December 31, 2019 Accounts receivable Inventory Total current assets Long-lived assets Total assets Current liabilities Long-term debt Shareholders' equity Total debt and equity $ 269,000 159,000 394,000 $ 822,000 1,730,000 $2,552,000 308,000 900,000 1,344,000 $2,552,000 Sales Income Statement For the year ended December 31, 2019 Cost of sales Gross margin Operating expenses* Taxes Operating income Net income $3,590,000 2,680,000 910,000 509,000 401,000 160,400 $ 240,600 Net income Cash Flow from Operations For the year ended December 31, 2019 Plus depreciation expense + Decrease (-increase) in accounts receivable and inventory + Increase (-decrease) in current liabilities Cash flow from operations $ 240,600 105,000 (144,000) 70,000 $ 271,600 Capital expenditures Income tax rate Depreciation expense Dividends $ 100,000 Industry 40% 35.0% $ 105,000 $ 41,000 Year-end stock price $ 3.15 25.00 Number of outstanding shares 1,890,000 Sales multiplier 1.50 Free cash flow multiplier 18.00 Earnings multiplier 9.00 Cost of capital 5% Accounts receivable turnover Inventory turnover 11.10 10.50 Current ratio 2.30 Quick ratio 1.90 Cash flow from operations ratio 1.20 Free cash flow ratio 1.10 Gross margin percentage 30.0% Return on assets (net book value) Return on equity 20.0% 30.0% Book value of equity Market value of equity Discounted free cash flows Enterprise value Multiples-based valuation Earnings multiple Free cash flow multiple Sales multiple