Alexis, your newly appointed boss, has tasked you with evaluating the following financial data for Western Gas & Electric Co. to determine how Western G&E'S value has changed over the past year. The investment firm for which you work will make a positive (or "buy") recommendation to its investing clients if Western G&E's value has increased over the past year, a neutral (or "hold") recommendation if the value has remained constant, 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. Western Gas & Electric Co Income Statement January 1 - December 31, Year2 Western Gas& Electric Co Balance Sheet December 31, Year 2 Year 1 $9,712,500 9,250,000 7,585,000 1,665,000 323,750 Year 2 Year 2 $659,063 2,196,875 3,844,531 6,700,469 4,283,906 $10,984,375 Year 1 $527,250 1,757,500 3,075,625 5,360,375 3,427,125 $8,787,500 Sales Cash and cash equivalents Receivables Inventory 7,770,000 1,942,500 339,938 1,602,562 291,375 1,311,187 524,475 $786,712 $472,027 $314,685 nses EBITDA Depreciation and amortization expense Current assets Net fixed assets 231,250 1,110,000 444,000 $666,000 $399,600 $266,400 Total assets Liabilities and Equity: Accounts payable Interest expense Tax expense (40%) Net income Common dividends Addition to retained earnings 1Excludes depreciation and amortization 1,070,977 2,306,719 5,025,352 2,114,492 7,139,844 768,906 3,075,625 3,844,531 $10,984,375 768,906 7.98% $1,647,656 $1,318,125 856,781 1,845,375 4,020,281 1,691,594 5,711,875 615,125 2,460,500 3,075,625 $8,787,500 Notes payable Total current liabilities Long-term debt Total liabilities Common stock ($1 par) Retained earnings Total equity Total debt and equity Shares outstanding Weighted average cost of capital 615,125 7.30% Type here to search