The King Mattress Company had the following operating results for 2018-2019. In addition, the company paid dividends in both 2018 and 2019 of $70,200 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 1,500,000 shares of outstanding stock at the end of 2019.

\fIncome Statement, for year ended Dec 31, 2619 2618 Sales $4,926,666 $4,676,666 Cost of Sales 4,236,666 4,136,666 Gross Margin 684,666 534,666 Operating Expenses 367,666 417,666 Operating Income 317,666 117,666 Taxes 126,866 46,866 Net Income $ 196,266 $ 76,266 Cash Flow From Operations 2619 2618 Net Income $ 196,266 $ 76,266 Plus Depreciation Expense 56,666 56,666 + Decrease (-inc) in AccRec. and Inv. 166,666 - + Increase (-dec) in Cur. Liabl. (166,666) - Cash Flow from Operations $ 246,266 $126,266 The value of the company, calculated using the free cash flow multiple for 2019 is