https://www.youtube.com/watch?v=AVM-RuLh2KI

1.) Prepare balance sheet after the deal. What are the assets, the liabilities and the Equity? Separate the Equity section intoKim's and Barbara's equity in the company. For the valuation of the liability (what DaisyCakes has to pay to Barbara) use your knowledge about time value of money. Assume a 10% discount rate. Hint: Roundupthe numbers of cakes sold per year to the next full 100s.

2.) "Guesstimate" the company's current annual sales, and net income. Prepare budgeted Income Statement. We do not really know how if the $18 she quotes include things like the electricity, depreciation or a salary toKim, herself, and her mother. So, for now, let's go with the information we got from the video. Based on this Balance Sheet and Income Statement, calculate the Profit Margin and RoI and Residual Income (assume 10%) for the overall