The Harrison Bicycle Company had the following operating results for 2018-2019. In addition, the company paid dividends in both 2018 and 2019 of $120,000 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 1,600,000 shares of outstanding stock at the end of 2019. Balance Sheet, Dec 31, 2019 2018 Cash $ 279,000 $ 112,000 Accounts Receivable $ 537,000 $ 412,000 Inventory $ 462,000 $ 312,000 Total Current Assets $ 1,278,000 $ 836,000 Long-lived Assets 1,265,000 1,160,000 Total Assets $ 2,543,000 $ 1,996,000 Current Liabilities $ 512,000 $ 312,000 Long-term Debt 720,000 620,000 Shareholder Equity 1,311,000 1,064,000 Total Debt and Equity $ 2,543,000 $ 1,996,000 Income Statement, for year ended Dec 31, 2019 2018 Sales $ 6,190,000 $ 5,390,000 Cost of Sales 5,065,000 4,480,000 Gross Margin 1,125,000 910,000 Operating Expenses 440,000 470,000 Operating Income 685,000 440,000 Taxes 318,000 199,000 Net Income $ 367,000 $ 241,000 Cash Flow From Operations 2019 2018 Net Income $ 367,000 $ 241,000 Plus Depreciation Expense 125,000 125,000 + Decrease (-inc) in AccRec. and Inv. (275,000 ) - + Increase (-dec) in Cur. Liabl. 200,000 - Cash Flow from Operations $ 417,000 $ 366,000 The gross margin percentage for 2019 is (rounded):