Alexis, your newly appointed boss, has tasked you with evaluating the following financial data for Atherton Corp. to determine how Atherton'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 Atherton'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. Atherton Corp Income Statement January 1 - December 31, Year 2 Atherton Corp Balance Sheet December 31, Year 2 Year 2 Year 1 $2,012,500 $,750,000 1,435,000 315,000 61,250 253,750 43,750 210,000 84,000 $126,000 Year 2 $124,688 415,625 727,344 1,267,657 810,468 $2,078,125 Year 1 $99,750 332,500 581,875 1,014,125 648,375 $1,662,500 1,610,000 402,500 70,438 Cash and cash equivalents Receivables Inventory Expenses1 EBITDA Depreciation and amortization expense Current assets EBIT Net fixed assets Total assets Liabilities and Equity: Accounts payable Accruals Notes payable Interest expense EBT 271,687 108,675 $163,012 $249,375 162,094 349,125 760,594 320,031 1,080,625 116,375 465,500 581,875 $2,078,125 $1,662,500 116,375 $311,719 202,617 436,406 950,742 400,039 1,350,781 145,469 581,875 727,344 Tax expense (40%) Net income Common dividends Addition to retained earnings 1Excludes depreciation and amortization $97,807 65,205 $75,600 Total current liabilities 50,400 Long-term debt Total liabilities Common stock ($1 par) Retained earnings Total equity Total debt and equity Shares outstanding Weighted average cost of capital 145,469 7.98%