Davidson Yachts is a small private company founded by two businesspeople who are friends and avid sailors. At present,

they are interested in expanding the business and have asked you to review its financial statements.

Davidson Yachts sells approximately $220$ to $270$ sailboats each year, ranging from $14-$foot dinghies to $20-$foot sailboats.

Their sales prices range from $$3,700$ to more than $$11,700.$ The company has a limited inventory of boats consisting

primarily of one or two boats from each of the four manufacturers that supply Davidson. The company also sells a variety

of supplies and parts and performs different types of service. Most sales are on credit.

The company operates from a large building that has offices, storage, and sales space for some of the smaller sailboats.

The larger sailboats are kept in a fenced area adjacent to the main building, and an ample parking area is nearby. This

year, Davidson purchased a boat lift to haul boats. The lift has brought in revenues for boat repairs, hull painting, and

related services, as well as the boat hauls.

The balance sheet and income statement for Davidson Yachts for $2017$ to $2022$ follow. The increase in net fixed assets in

the recent $2$ years is due to improvements in the building, paving of the parking area, and the purchase of the lift. The company obtains its debt financing from two sources: $(1)$ a small savings and loan for its short$-$term funds and $(2)$ a

larger commercial bank, also for short$-$term loans, but principally for long$-$term financing. The terms of the loan agreement

with the bank include a restriction that Davidson's current ratio must remain higher than $1\mathrm{.}5.$ Required:

What is the valuation of Davidson Yachts Company using the book value of equity method?

What is the valuation of Davidson Yachts Company using the multiples$-$based method on earnings? Assume the industry average

earnings multiple is $7.$ Use the median value of the most recent $3$ years for earnings.

What is the valuation of Davidson Yachts Company using the multiples$-$based method on operating cash flow? Assume the industry

average multiple on operating cash flow is $5.$ Use the median value of the most recent $3$ years for cash flow.