Josh, your newly appointed boss, has tasked you with evaluating the following financial data for Allied Biscuit Co. to determine how Allied Biscuit's value has changed value has increased over the past year, a neutral (or "hold") recommendation if the value has remained constant, over the past year. The investment firm for which you work will make a positive (or "buy") recommendation to its investing clients if Allied Biscuit's or a negative (or "sell) recommendation if the value has decreased. He has recommended that you use several metrics to ascertain how the firm's value has changed, and he has provided you with the following income statement and balance sheet. Allied Biscuit Co. Allied Biscuit Co. Income Statement Balance sheet January 1- December 31, Year 2 December 31, Year 2 Assets: Year 2 Year 1 Year 2 Year 1 Cash and cash equivalents $285,000 Sales $5,500,000 $5,000,000 $299,250 Expenses 4,100,000 Receivables 4,400,000 997,500 950,000 Inventory 1,100,000 1,745,625 1,662,500 EBITDA 900,000 Depreciation and amortization expense 175,000 Current assets 192,500 3,042,375 2,897,500 Net fixed assets 1,852,500 1,945,125 EBIT 907,500 725,000 Interest expense $4,987,500 Total assets $4,750,000 165,000 125,000 Liabilities and Equity: 742,500 600,000 EBT $748,125 Accounts payable $712,500 Tax expense (40%) 297,000 240,000 Accruals 486,281 463,125 Net income $445,500 $360,000 Notes payable 1,047,375 997,500 Common dividends $267,300 $216,000 Total current liabilities 2,281,781 2,173,125 Addition to retained earnings $144,000 $178,200 Long-term debt 960,094 914,375 1Excludes depreciation and amortization Total liabilities 3,241,875 3,087,500 Common stock ($1 par) 349,125 332,500 Retained earnings 1,330,000 1,396,500 Total equity 1,745,625 1,662,500 Total debt and equity $4,987,500 $4,750,000 Shares outstanding Weighted average cost of capital 349,125 332,500 7.98% 7,30% To facilitate your analysis, complete the following table, and use the results to answer the related questions. Round your percentage change answers too two decimal places. Using the change in Allied Biscuit's EVA as the decision Company Growth and Performance Metrics criterion, which type of investment recommendation Percentage should you make to your clients? change Metric Year 2 Year 1 General Metrics A buy recommendation Sales $5,500,000 $5,000,000 A hold recommendation A sell recommendation Net income $445,500 $360,000 Net cash flow (NCF) $535,000 which of the following statements are correct? check all Net operating working capital (NOWC) $1,807,969 that apply. Earnings per share (EPS) $1.08 For any given year, one way to compute Allied Dividends per share (DPS) $0.77 Biscuit's EVA is as the difference between its Book value per share (BVPS) $5.00 0.00% NOPAT (such as $435,000) and the product of its cash flow per share (CFPS) 13.66% operating capital ($3,574,375) and its weighted Market price per share $22.22 $19.75 average cost of capital ($7.30) The percentage change in Allied Biscuit's MVA MVA Calculation indicates that its management has increased the Market value of equity 18.13% firm's value. Book value of equity $1,745,625 $1,662,500 The percentage change in Allied Biscuit's EVA Market value Added (MVA) $4,904,375 indicates that management has increased its EVA Calculation value Net operating profit after-tax (NOPAT) $544,500 Investor-supplied operating capital is recorded as Investor-supplied operating capital Weighted average cost of capital accounts payable, accruals, and short-term 5.00% investments. 7.98% 7.30% Allied Biscuit's NCF is calculated by adding its Dollar cost of capital Return on invested capital (ROIC) 14.78% annual depreciation and amortization expense to 19.23% the corresponding year's EBITDA $245,077 Economic Value Added (EVA) Josh, your newly appointed boss, has tasked you with evaluating the following financial data for Allied Biscuit Co. to determine how Allied Biscuit's value has changed value has increased over the past year, a neutral (or "hold") recommendation if the value has remained constant, over the past year. The investment firm for which you work will make a positive (or "buy") recommendation to its investing clients if Allied Biscuit's or a negative (or "sell) recommendation if the value has decreased. He has recommended that you use several metrics to ascertain how the firm's value has changed, and he has provided you with the following income statement and balance sheet. Allied Biscuit Co. Allied Biscuit Co. Income Statement Balance sheet January 1- December 31, Year 2 December 31, Year 2 Assets: Year 2 Year 1 Year 2 Year 1 Cash and cash equivalents $285,000 Sales $5,500,000 $5,000,000 $299,250 Expenses 4,100,000 Receivables 4,400,000 997,500 950,000 Inventory 1,100,000 1,745,625 1,662,500 EBITDA 900,000 Depreciation and amortization expense 175,000 Current assets 192,500 3,042,375 2,897,500 Net fixed assets 1,852,500 1,945,125 EBIT 907,500 725,000 Interest expense $4,987,500 Total assets $4,750,000 165,000 125,000 Liabilities and Equity: 742,500 600,000 EBT $748,125 Accounts payable $712,500 Tax expense (40%) 297,000 240,000 Accruals 486,281 463,125 Net income $445,500 $360,000 Notes payable 1,047,375 997,500 Common dividends $267,300 $216,000 Total current liabilities 2,281,781 2,173,125 Addition to retained earnings $144,000 $178,200 Long-term debt 960,094 914,375 1Excludes depreciation and amortization Total liabilities 3,241,875 3,087,500 Common stock ($1 par) 349,125 332,500 Retained earnings 1,330,000 1,396,500 Total equity 1,745,625 1,662,500 Total debt and equity $4,987,500 $4,750,000 Shares outstanding Weighted average cost of capital 349,125 332,500 7.98% 7,30% To facilitate your analysis, complete the following table, and use the results to answer the related questions. Round your percentage change answers too two decimal places. Using the change in Allied Biscuit's EVA as the decision Company Growth and Performance Metrics criterion, which type of investment recommendation Percentage should you make to your clients? change Metric Year 2 Year 1 General Metrics A buy recommendation Sales $5,500,000 $5,000,000 A hold recommendation A sell recommendation Net income $445,500 $360,000 Net cash flow (NCF) $535,000 which of the following statements are correct? check all Net operating working capital (NOWC) $1,807,969 that apply. Earnings per share (EPS) $1.08 For any given year, one way to compute Allied Dividends per share (DPS) $0.77 Biscuit's EVA is as the difference between its Book value per share (BVPS) $5.00 0.00% NOPAT (such as $435,000) and the product of its cash flow per share (CFPS) 13.66% operating capital ($3,574,375) and its weighted Market price per share $22.22 $19.75 average cost of capital ($7.30) The percentage change in Allied Biscuit's MVA MVA Calculation indicates that its management has increased the Market value of equity 18.13% firm's value. Book value of equity $1,745,625 $1,662,500 The percentage change in Allied Biscuit's EVA Market value Added (MVA) $4,904,375 indicates that management has increased its EVA Calculation value Net operating profit after-tax (NOPAT) $544,500 Investor-supplied operating capital is recorded as Investor-supplied operating capital Weighted average cost of capital accounts payable, accruals, and short-term 5.00% investments. 7.98% 7.30% Allied Biscuit's NCF is calculated by adding its Dollar cost of capital Return on invested capital (ROIC) 14.78% annual depreciation and amortization expense to 19.23% the corresponding year's EBITDA $245,077 Economic Value Added (EVA)