Problem 1 It is now 2024. You have been assigned as a financial advisor of a Philippine start-up company. They assigned you to value its existing business had they exited the market 6 years ago, meaning in 2018. Details of the company are as follows: Further assume that the company will not exist beyond 2023, meaning the going concern principle will not apply. Also assume that the client wants you to use the dividend discount model for this project. Sales 2018 6,458,000.0 2019 7,412,000.0 Variable expenses 38.0% 40.0% Fixed expenses 29.0% 31.0% Tax Rate 21.0% 25.0% After conducting a financial due diligence, you found that 2020 8,126,000.0 2021 8,941,000.0 2022 9,457,000.0 41.0% 30.0% 40.0% 42.0% 2023 10,025,000.0 44.0% 30.0% 28.0% 24.0% 25.0% 30.0% 30.0% 30.0% 1.) 2019 sales are inclusive of a 250,000 sales invoice that were in transit as of EOY 2019, thus delivered to the client on 2020, with terms of FOB Shipping Point. 2.) 2020 sales excluded a contract signed for services worth 1,200,000. Contract is dated December 11, 2020, total cash was paid outright, but services will be rendered starting 2021. Contract is for a one year term only. 3.) 2020 internal audit findings revealed that 175,000 worth of sales invoice were backdated (original date is January 15, 2021) to boost 2020 sales. 4.) 257,000 worth of 2019 sales were revealed as window dressed sales (sales invoice dated January 22, 2020). 5.) 2018 sales are inclusive of a 450,000 cash collection of a previously written off account. 6.) 2018 sales (considered consolidated unless otherwise stated) are inclusive of a 354,000 Home Office Sale to Branch X. 7.) 2019-2021 office supplies were expensed initially, as part of variable expenses. No adjustments were made. Details of the EOY office supplies on hand are as follows: Office Supplies 2019 56,450.0 2020 62,157.0 2021 75,154.0