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 $ 267,000 157,000 392,000 $ 816,000 1,710,000 $ 2,526,000 284,000 900,000 1,342,000 $ 2,526,000 2021 $ 142,000 232,000 182,000 $ 556,000 1,570,000 $ 2,126,000 245,000 870,000 1,011,000 $ 2,126,000 Sales Cost of sales Gross margin Operating expenses* Operating income Taxes Net income Income Statement For the years ended December 31 2022 $ 3,570,000 2,640,000 930,000 2021 $ 3,670,000 2,740,000 930,000 507,000 373,000 423,000 557,000 169,200 194,950 $ 362,050 Net income Plus depreciation expense $ 253,800 Cash Flow from Operations + Decrease (-increase) in accounts receivable and inventory + Increase (-decrease) in current liabilities Cash flow from operations *Operating expenses include depreciation expense. 2022 $ 253,800 95,000 (135,000) 39,000 $ 252,800 2021 $ 362,050 85,000 $ 447,050