Below is selected current financial data about Davis Distributions.

Calculate the value of the company based on the data provided.

The discount rate to be used for all years is 10%.

DESCRIPTION	YEAR 1
Cash	$110,000
Accounts Receivables	$380,000
Inventory	$350,000
Property, Plant, and Equipment	$900,000
Accumulated Depreciation -Property, Plant, and Equipment	($40,000)
Other Assets	$100,000
Accounts Payables	$120,000
Accrued Expenses	$80,000
Accrued Revenue	$360,000
Notes Payable First Bank (Short Term)	$40,000
Note Payable First Bank (long term)	$800,000
Capital Stock (Common Shareholders')	$100,000
Capital Stock (Preferred Shareholders')	$100,000
Retained Earnings	$200,000

DESCRIPTION	YEAR 1 AMOUNT
Revenue	$800,000
Cost of Goods Sold	($480,000)
Gross Margin	$320,000
Operating Expenses	($80,000)
Selling, General, and Administrative Expenses (including Depreciation Expense)	($140,000)
Net Income	$100,000

	YEAR 2	YEAR 3	YEAR 4
Revenue	$1,000,000	$1,200,000	$1,400,000
Cost of Goods Sold	($450,000)	($550,000)	($650,000)
Gross Margin	$550,000	$650,000	$750,000
Depreciation Expense	($20,000)	($20,000)	($20,000)
Other Expenses	($230,000)	($230,000)	($230,000)
Net Income	$300,000	$400,000	$500,000
Net Change in Working Capital	($400,000)	$200,000	$600,000
Projected Capital Expenditures	$100,000	$100,000	$100,000
Dividends to Preferred Shareholders'	$50,000	$50,000	$50,000