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.

Williams Company is a manufacturer of auto parts having the following nancial statements for 20212022. Balance Sheet December 31 2822 2821 Cash :5 224,000 $ 149,099 Accounts receivable 164,000 239,099 Inventory 399,000 189,099 Total current assets $ 832,000 $ 527,099 Longlived assets 1,280,000 1,640,099 Total assets $ 2,612,000 $ 2,212,099 Current liabilities 368,000 315,099 Longterm debt 990,000 940,099 Shareholders' equity 1,349,000 962,099 Total debt and equity $ 2:517:999 $ 232173999 Income Statement For the years ended December 31 2822 2821 Sales :3 3,649,000 $ 3,240,099 Cost of sales 2,789,000 2,880,099 Gross margin 869,000 860,099 Operating expenses* 514,000 296,099 Operating income 346,000 564,099 Taxes 121,100 192,488 Net income $ 224,900 $ 366,699 Cash Flow from Operations 2822 28 21 Net income $ 224,900 $ 366,699 Plus depreciation expense 139,000 120,099 f Decrease [1ncrease) in accounts receivable and (135,900) _ inventory + Increase (decrease) in current liabilities 53,000 Cash flow from operations 5 2723999 $ 4853599 *Operating expenses include depreciation expense. Additional financial information, including industry averages for 2022, where appropriate, includes: 2822 2821 Industry 2822 Capital expenditures $ 120,000 $ 240,000 Income tax rate 35% 35% 35.9% Depreciation expense $ 130,000 $ 120,000 Dividends $ 36,000 $ 36,000 Yearend stock price $ 3.65 $ 4 25.99 Number of outstanding shares 1,940,000 1,940,000 Sales multiplier 1.59 Free cash flow multiplier 18.99 Earnings multiplier 9.99 Cost of capital 5% 5% Accounts receivable turnover 11.19 Inventory turnover 10.59 Lurrent ratio 2.39 Quick ratio 1.99 Cash flow from operations ratio 1.29 Free cash flow ratio 1.19 Gross margin percentage 30.9% Return on assets [net book value) 20.9% Return on equity 30.9% 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 ow (OCH, (4} enterprise value. and {5] all the multiplesbased valuations for which there is an industry average multiplier. For the calculation ofthe DCF valuation, you may use the simplifying assumption that free cash flows will continue indenitely at the amount in 2022. Book value of equity Market value ofequib,r Discounted free cash ows Enterprise value Multiples-based valuation Earnings multiple Free cash flow multiple Sales multiple