- Williams Company Is A Manufacturer Of Auto Parts Having The Following Financial Statements For 2021 2022 Cash Accounts 1 (20.46 KiB) Viewed 13 times
- Williams Company Is A Manufacturer Of Auto Parts Having The Following Financial Statements For 2021 2022 Cash Accounts 2 (22.55 KiB) Viewed 13 times
- Williams Company Is A Manufacturer Of Auto Parts Having The Following Financial Statements For 2021 2022 Cash Accounts 3 (22.63 KiB) Viewed 13 times
- Williams Company Is A Manufacturer Of Auto Parts Having The Following Financial Statements For 2021 2022 Cash Accounts 4 (24.44 KiB) Viewed 13 times
- Williams Company Is A Manufacturer Of Auto Parts Having The Following Financial Statements For 2021 2022 Cash Accounts 5 (19.46 KiB) Viewed 13 times
Sales Cost of sales Gross margin Operating expenses* Operating income Taxes Income Statement For the years ended December 31 2022 $ 3,660,000 2,820,000 840,000 516,000. 324,000 113,400 $ 210,600 Net income 2021 $ 3,760,000 2,920,000 840,000 274,000 566,000 Cash Flow from Operations Net income Plus depreciation expense + Decrease (-increase) in accounts receivable and inventory + Increase (-decrease) in current liabilities Cash flow from operations 198, 100 $367,900 2022 $ 210,600 140,000 (135,000) 57,000 $ 272,600 2021 $ 367,900 130,000 $ 497,900
*Operating expenses include depreciation expense. Additional financial information, including industry averages for 2022, where appropriate, includes: Capital expenditures Income tax rate Depreciation expense Dividends Year-end stock price Number of outstanding shares Sales multiplier Free cash flow multiplier Earnings multiplier Cost of capital Accounts receivable turnover Inventory turnover Current ratio Quick ratio 2022 $ 170,000 35% $ 140,000 $ 34,000 $ 3.85 1,960,000 5% 2021 $260,000 35% $ 130,000 $ 34,000 $4 1,960,000 5% Industry 2022 35.0% 25.00 1.50 18.00 9.00 11.10 10.50 2.30 1.90
Current ratio Quick ratio Cash flow from operations ratio Free cash flow ratio Gross margin percentage Return on assets (net book value) Return on equity 2.30 1.90 Book value of equity Market value of equity 1.20 1.10 30.0% 20.0% 30.0% Required: Develop a business valuation for Williams Company for 2022 using the following methods: (1) book value of equity, (2) market value of equity, (3) discounted cash flow (DCF). (4) enterprise value, 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 2022.
Book value of equity Market value of equity Discounted free cash flows Enterprise value Multiples-based valuation Earnings multiple Free cash flow multiple Sales multiple