how do I formulate a problem like this

Current Sales3 million dollars per year

Cost of goods1.7 million dollars per year

Cash Expenses725 thousand dollars per year

Depreciation Expense125 thousand dollars per year

Cash on the balance sheet150 thousand dollars

Receivables on the balance sheet75 thousand dollars

Inventory on the balance sheet300 thousand dollars

Fixed asset net of depreciation on the balance sheet 450 thousand dollars

Total Current Liabilities on the balance sheet175 thousand dollars

Total Long Term Debt on the balance sheet 600 thousand dollars

Your required return on investment is 20 percent.This is the figure you will use to calculate the present value of EBITDA.

You will also buy the receivables.But you will not buy the cash on the balance sheet.

What needs to be figured

1.income statement (down to EBIT) and a balance sheet using the data provided above.The balance sheet should include total assets and total liabilities and equity.

2.Calculate EBITDA for this business.

3.Calculate the business value for this business