Net Income/Profits/(Losses): 2019. $18,000 2018 - ($120,000) - Loss 2017 - $25,000 2016 - $10,000 2015 - ($15,000) - Loss The owner has given you a current balance sheet for your review. PHOTOGRAPHY STUDIO - BALANCE SHEET 12/31/19 ASSETS Current Assets Cash Accounts Receivable Inventory $16,000 $65,000 $45.000 $126,000 Total Current Assets: Fixed Assets Equipment Less accumulated depreciation $30,000 ($18,000) $12,000 Total Fixed Assets: TOTAL ASSETS $138,000 LIABILITIE Current Liabilities Accounts Payable Other Liabilities Accrued Taxes $85,000 $ 3.000 $15,000 $103,000 Total Current Liabilities: Long-term Liabilities Long-term Debt Total Long-term Liabilities: $13,000 $13,000 TOTAL LIABILITIES $126,000 OWNER'S EQUITY TOTAL LIABILITIES AND OWNER'S EQUITY $12,000 S138,000 Foct OLC Calculate the valuations for the firm using the information that you have been given above, as well as the assumptions below. Specifically, calculate the valuations using the following valuation methods: 1. Basic Balance Sheet Method (2 points) 2. Market Approach (5 points) I Use the following assumptions: 1. Assume a "most likely" growth rate of 6 percent per year for the business over the next 5 years. 2. Assume that the six publicly traded firms that are in the same industry trade at P/E ratios of 4, 5, 7, 8, 11, and 11, respectively. Net Income/Profits/(Losses): 2019. $18,000 2018 - ($120,000) - Loss 2017 - $25,000 2016 - $10,000 2015 - ($15,000) - Loss The owner has given you a current balance sheet for your review. PHOTOGRAPHY STUDIO - BALANCE SHEET 12/31/19 ASSETS Current Assets Cash Accounts Receivable Inventory $16,000 $65,000 $45.000 $126,000 Total Current Assets: Fixed Assets Equipment Less accumulated depreciation $30,000 ($18,000) $12,000 Total Fixed Assets: TOTAL ASSETS $138,000 LIABILITIE Current Liabilities Accounts Payable Other Liabilities Accrued Taxes $85,000 $ 3.000 $15,000 $103,000 Total Current Liabilities: Long-term Liabilities Long-term Debt Total Long-term Liabilities: $13,000 $13,000 TOTAL LIABILITIES $126,000 OWNER'S EQUITY TOTAL LIABILITIES AND OWNER'S EQUITY $12,000 S138,000 Foct OLC Calculate the valuations for the firm using the information that you have been given above, as well as the assumptions below. Specifically, calculate the valuations using the following valuation methods: 1. Basic Balance Sheet Method (2 points) 2. Market Approach (5 points) I Use the following assumptions: 1. Assume a "most likely" growth rate of 6 percent per year for the business over the next 5 years. 2. Assume that the six publicly traded firms that are in the same industry trade at P/E ratios of 4, 5, 7, 8, 11, and 11, respectively