Exercise 20-35 (Algo) Business Valuation [LO 20-4] Williams Company is a manufacturer of auto parts having the following financial statements for 2021-2022. Balance Sheet December 31 Cash Accounts receivable Inventory Total current assets Long-lived assets Total assets Current liabilities Long-term debt Shareholders' equity Total debt and equity 2022 $ 272,000 162,000 397,000 $ 831,000 1,760,000 $ 2,591,000 344,000 900,000 1,347,000 $ 2,591,000 2021 $ 147,000 237,000 187,000 $ 571,000 1,620,000 $ 2,191,000 295,000 920,000 976,000 $ 2,191,000 Sales Cost of sales Gross margin Operating expenses* Operating income Taxes Net income Income Statement For the years ended December 31 2022 $ 3,620,000 2,740,000 2021 $ 3,720,000 2,840,000 880,000 880,000 512,000 368,000 128,800 $ 239,200 318,000 562,000 196,700 $ 365,300