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Williams Company is a manufacturer of auto parts having the following financial statements for 2018-2019. Balance Sheet December 31 2019 2018 Cash $ 264,000 $

Williams Company is a manufacturer of auto parts having the following financial statements for 2018-2019.

Balance Sheet
December 31
2019 2018
Cash $ 264,000 $ 139,000
Accounts receivable 154,000 229,000
Inventory 389,000 179,000
Total current assets $ 807,000 $ 547,000
Long-lived assets 1,680,000 1,540,000
Total assets $ 2,487,000 $ 2,087,000
Current liabilities 248,000 215,000
Long-term debt 900,000 840,000
Shareholders equity 1,339,000 1,032,000
Total debt and equity $ 2,487,000 $ 2,087,000

Income Statement
For the years ended December 31
2019 2018
Sales $ 3,540,000 $ 3,640,000
Cost of sales 2,580,000 2,680,000
Gross margin 960,000 960,000
Operating expenses* 504,000 406,000
Operating income 456,000 554,000
Taxes 159,600 193,900
Net income $ 296,400 $ 360,100

Cash Flow from Operations
2019 2018
Net income $ 296,400 $ 360,100
Plus depreciation expense 80,000 70,000
+ Decrease (increase) in accounts receivable and inventory (135,000 )
+ Increase (decrease) in current liabilities 33,000
Cash flow from operations $ 274,400 $ 430,100

*Operating expenses include depreciation expense.

Additional financial information, including industry averages for 2019, where appropriate, includes:

2019 2018 Industry 2019
Capital expenditures $ 105,000 $ 140,000
Income tax rate 35 % 35 % 35.0 %
Depreciation expense $ 80,000 $ 70,000
Dividends $ 46,000 $ 46,000
Year-end stock price $ 2.65 $ 3 25.00
Number of outstanding shares 1,840,000 1,840,000
Sales multiplier 1.50
Free cash flow multiplier 18.00
Earnings multiplier 9.00
Cost of capital 5 % 5 %
Accounts receivable turnover 11.10
Inventory turnover 10.50
Current ratio 2.30
Quick ratio 1.90
Cash flow from operations ratio 1.20
Free cash flow ratio 1.10
Gross margin percentage 30.0 %
Return on assets (net book value) 20.0 %
Return on equity 30.0 %

Required:

discounted cash flow (DCF),and (5) all the multiples-based valuations for which there is an industry average multiplier. For the calculation of the DCF valuation, you may use the simplifying assumption that free cash flows will continue indefinitely at the amount in 2019.

In other words I only need how to calculate DCF and Multiples-based valuations for Free cash flow multiple

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