You are the owner of Paul's Guitar Shop, Inc and it is time to valuate the business. How do you find the selling price of the business based off of the income statement? (Be sure to find the selling price not the book value.) Explain calculations thoroughly.

 

Revenues Merchandise Sales Music Lesson Income Total Revenues: Expenses Paul's Guitar Shop, Inc. Income Statement For the Year Ended December 31, 2015 Cost of Goods Sold Depreciation expense Wage expense Rent expense Interest expense Supplies expense Utilities expense Total Expenses: Net Income $ 24,800 3,000 10,200 2,000 750 500 500 500 400 $ $ 27,800 14,850 12,950