please need correct answer for problem 5

with 3 requiremenst i really appreciate it

Problem 5 (11marks) Lee Nicholas has been the owner and has operated Valero since its beginning 10 years ago. The company has prospered. Recently, Nicholas mentioned that he would sell the business for the right price. Assume that you are interested in buying Valero. You obtain the most recent monthly trial balance, which follows. Revenues and expenses vary little from month to month, and January is a typical month. The trial balance shown is a preliminary or unadjusted trial balance. The controller informs you that the necessary accrual adjustments should include revenues of $5,000 and expenses of $2,300. Also, if you were to buy Valero, you would hire a manager so you could devote your time to other duties. Assume that this person would require a monthly salary of $5,000. VALERO Trial Balance January 31, 2015 Balance Credit Debit 59,700 14.100 2000 210.00 $6.00 13.000 Account Title Cash Accounts receivable Prepaid Big Accented depreciatic Accounts payable Salasy payable Uuenned Server Nichola, capital Service revenu Resepse Salary expen Uit ex Depreciation expense Supplies Total 110.400 900 52.000 $26.000 Requirements 1. Assume that the most you would pay for the business is 20 times the monthly net income you could expect to earn from it. Compute this possible price.(3 marks) 2. Nicholas states the least he will take for the business is an amount equal to the business's owner' s equity balance on January 31. Compute this amount.(3 marks) 3. Under these conditions, how much should you offer Nicholas? Give your reason.(5 marks) Problem 5 (11marks) Lee Nicholas has been the owner and has operated Valero since its beginning 10 years ago. The company has prospered. Recently, Nicholas mentioned that he would sell the business for the right price. Assume that you are interested in buying Valero. You obtain the most recent monthly trial balance, which follows. Revenues and expenses vary little from month to month, and January is a typical month. The trial balance shown is a preliminary or unadjusted trial balance. The controller informs you that the necessary accrual adjustments should include revenues of $5,000 and expenses of $2,300. Also, if you were to buy Valero, you would hire a manager so you could devote your time to other duties. Assume that this person would require a monthly salary of $5,000. VALERO Trial Balance January 31, 2015 Balance Credit Debit 59,700 14.100 2000 210.00 $6.00 13.000 Account Title Cash Accounts receivable Prepaid Big Accented depreciatic Accounts payable Salasy payable Uuenned Server Nichola, capital Service revenu Resepse Salary expen Uit ex Depreciation expense Supplies Total 110.400 900 52.000 $26.000 Requirements 1. Assume that the most you would pay for the business is 20 times the monthly net income you could expect to earn from it. Compute this possible price.(3 marks) 2. Nicholas states the least he will take for the business is an amount equal to the business's owner' s equity balance on January 31. Compute this amount.(3 marks) 3. Under these conditions, how much should you offer Nicholas? Give your reason