The Harrison Bicycle Company had the following operating results for 2018-2019. In addition, the company paid dividends in both 2018 and 2019 of $90,000 per year and made capital expenditures in both years of $230,000 per year. The company's stock price in 2018 was $14.20 and $12.50 in 2019. Also in 2019, the industry average earnings multiple for the bicycle industry was 8 and the free cash flow and sales multiples were 16 and 1.35, respectively. The company is publicly owned and has 1,200,000 shares of outstanding stock at the end of 2019. Balance Sheet, Dec 31, Cash Accounts Receivable Inventory Total Current Assets Long-lived Assets Total Assets Current Liabilities Long-term Debt Shareholder Equity Total Debt and Equity 2019 2018 $ 275,000 $ 108,000 $ 100 $ 533,000 $ 408,000 $ 458,000 $ 308,000 $1,266,000 $ 824,000 1,245,000 1,140,000 $2,511,000 $1,964,000 $ 508,000 $ 308,000 680,000 1,323,000 $2,511,000 580,000 1,076,000 $1,964,000 Income Statement, for year ended Dec 31, Sales ded Dec 2018 2019 $6,260,000 $5,480,000 5,155,000 4,470,000 Cost of Sales Gross Margin Operating Expenses SEP 26 1,105,000 1,010,000 470.000 490.000 260 f < Prev 39 of 50 Next > S tv P W f Mc Graw Hill 39 BEE 00:39:44 Shareholder Equity Total Debt and Equity 1,323,000 1,076,000 $2,511,000 $1,964,000 Help Income Statement, for year ended Dec 31, Sales Cost of Sales Gross Margin Operating Expenses Operating Income Taxes Net Income 2019 2018 $6,260,000 $5,480,000 5,155,000 4,470,000 1,105,000 1,010,000 470,000 490,000 635,000 520,000 298,000 201,000 $ 337,000 $ 319,000 Cash Flow From Operations Net Income Plus Depreciation Expense + Decrease (-inc) in AccRec. and Inv. + Increase (-dec) in Cur. Liabl. Cash Flow from Operations Return on assets for 2019 is (rounded): SEP 26 260 " 2019 $ 337,000 2018 $319,000 125,000 (275,000) 200,000 125,000 $ 387,000 $444,000 < Prev 39 of 50 Next > tv A W Save & Exit