The King Mattress Company had the following operating results for 2018-2019. In addition, the company paid dividends in both 2018 and 2019 of $60,000 per year and made capital expenditures in both years of $30,000 per year. The company's stock price in 2018 was $8 and $7 in 2019. The industry average earnings multiple for the mattress industry was 9 in 2019 and the free cash flow and sales multiples were 18 and 1.5, respectively. The company is publicly owned and has 1,200,000 shares of outstanding stock at the end of 2019.

Balance Sheet, Dec 31, 2019 2018 Cash 340, 000 100, 000 Accounts Receivable 350, 000 400, 000 Inventory 250, 000 300, 000 Total Current Assets 940, 000 800, 000 Long-lived Assets 1, 080, 000 1, 100, 000 Total Assets $2, 020, 000 $1, 900, 000 Current Liabilities 200,000 $ 300, 000 Long-term Debt 600, 000 500, 000 Shareholder Equity 1, 220, 000 1, 100, 000 Total Debt and Equity $2, 020, 000 $1, 900, 000Income Statement, for year ended Dec 31, 2019 2018 Sales $4, 750, 000 $4,500, 000 Cost of Sales 4, 100, 000 4, 000, 000 Gross Margin 650, 090 500, 000 Operating Expenses 350, 000 400, 000 Operating Income 300, 000 100, 000 Taxes 120, 000 40, 000 Net Income $ 180 , 000 $ 60, 000 Cash Flow From Operations 2019 2018 Net Income $ 180, 000 $ 60, 000 Plus Depreciation Expense 50, 000 50, 000 + Decrease (-inc) in AccRec. and Inv. 100, 000 + Increase (-dec) in Cur. Liable (100, 000) Cash Flow from Operations 230, 000 $110, 000