1) Calculate the valuation of the company as you prepare to sell the company to potential buyers....
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Question:
1) Calculate the valuation of the company as you prepare to sell the company to potential buyers.
2) Explain the key component of how you came to the valuation.
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Cash Flow Beginning Cash Balance RECEIPTS AND DISBURSEMENTS FROM OPERATING ACTIVITIES Revenues - Rebates - Production - Research and Development -Quality Costs - System Improvement Costs - Advertising - Internet Marketing Expenses -Sales Force Expense - Store Expense - Marketing Research - Shipping - Excess Capacity Cost - Income Taxes + Interest Income - Interest Charges + Other Income - Other Expenses = Net Operating Cash Flow INVESTING ACTIVITIES Fixed Production Capacity = Total Investing Activities Quarter 1 Quarter 2 Quarter 3 0 203,875 480,005 0 0 646,900 771,600 42,350 27,550 190,180 188,557 0 120,000 0 0 0 0 0 136,000 0 0 0 0 4,875 0 0 0 5,941 14,336 0 90,000 2,057,189 1,136,907 47,308 22,370 168,690 148,394 5,000 100,000 618,750 980,030 239,153 510,881 15,517 64,022 100,000 114,352 3,000 4,000 48,654 101,748 244,000 106,000 165,970 399,367 196,000 123,000 15,000 15,000 15,000 61,127 0 0 0 0 0 -251,125 -68,870 5,955 31,071 0 0 0 0 0 Quarter 4 Quarter 5 225,002 992,495 720,000 480,000 720,000 720,000 480,000 720,000 4,121,200 6,994,650 9,702,250 91,850 139,300 194,200 1,522,681 2,585,312 3,581,336 910,879 142,493 972,655 659,241 147,926 15,000 42,907 0 0 0 0 0 0 -35,003 -1,012,507 0 0 0 Quarter 6 863,805 0 0 0 438,333 207,000 15,000 81,054 0 558,375 OOOO 0 0 0 0 831,309 1,793,758 720,000 960,000 720,000 720,000 960,000 720,000 Cash Flow Beginning Cash Balance RECEIPTS AND DISBURSEMENTS FROM OPERATING ACTIVITIES Revenues - Rebates - Production - Research and Development -Quality Costs - System Improvement Costs - Advertising - Internet Marketing Expenses -Sales Force Expense - Store Expense - Marketing Research - Shipping - Excess Capacity Cost - Income Taxes + Interest Income - Interest Charges + Other Income - Other Expenses = Net Operating Cash Flow INVESTING ACTIVITIES Fixed Production Capacity = Total Investing Activities Quarter 1 Quarter 2 Quarter 3 0 203,875 480,005 0 0 646,900 771,600 42,350 27,550 190,180 188,557 0 120,000 0 0 0 0 0 136,000 0 0 0 0 4,875 0 0 0 5,941 14,336 0 90,000 2,057,189 1,136,907 47,308 22,370 168,690 148,394 5,000 100,000 618,750 980,030 239,153 510,881 15,517 64,022 100,000 114,352 3,000 4,000 48,654 101,748 244,000 106,000 165,970 399,367 196,000 123,000 15,000 15,000 15,000 61,127 0 0 0 0 0 -251,125 -68,870 5,955 31,071 0 0 0 0 0 Quarter 4 Quarter 5 225,002 992,495 720,000 480,000 720,000 720,000 480,000 720,000 4,121,200 6,994,650 9,702,250 91,850 139,300 194,200 1,522,681 2,585,312 3,581,336 910,879 142,493 972,655 659,241 147,926 15,000 42,907 0 0 0 0 0 0 -35,003 -1,012,507 0 0 0 Quarter 6 863,805 0 0 0 438,333 207,000 15,000 81,054 0 558,375 OOOO 0 0 0 0 831,309 1,793,758 720,000 960,000 720,000 720,000 960,000 720,000
Expert Answer:
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1 The valuation of the company can be calculated by using the discounted cash flow DC F method This ... View the full answer
Related Book For
Auditing A Practical Approach with Data Analytics
ISBN: 978-1119401742
1st edition
Authors: Raymond N. Johnson, Laura Davis Wiley, Robyn Moroney, Fiona Campbell, Jane Hamilton
Posted Date:
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