Problem Lee Nicholas has been the owner and has operatod World.com Advertising since its bepinning 10 years apo. The company has prosperod. Recently, Nicholas metioned that he would sell the business for the right price. Assume that you are imerested in buying World.com Advertising You obain the mo recent monthly trial balance, which follows. Revenaes and expenses vary little from mondh to month and January is a typical month The trial balance shown is a preliniry oe unadjuted trial balance The contreller infoms you that the necessary accrual adjustments should inclade revenues of S3,800 and expenses of $1,100. Also, if you were to buy World.com Advertising, you would hire a manager so you could devote youe time to ether duties. Assume that this persen would require a mothly salary of $5,000 WORLD.COM ADVERTISI NG Trial Balance January 31, 2015 Balance Account Title Debit Credit $9,700 Cash Accounts receivable 14,100 Prepaid expenses Building 2600 221,300 S68600 Accumulated depreciation 13.000 Accounts payable Salary payable 56,700 10,400 Uneaned service nevenue Nicholas, capital Nicholas, drawing 9,000 12300 Service revenue Rest expense Salary expense Uslnies expense 340 900 Depeeciation espense Supplies expense $ 261000 Toal S 261,000 Requirements Assume that the mot you would pay foe the busines is 20 times the montly net income you could expect to cam from it. Compute this possible price. 2 Nicholas states the least he will take for the business is an amount equal to the business's owner's cquity balance on January 31. Compute this amount 3. Under these conditions, how much should you offer Nichelas? Give your reason