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 $3,575,000 2,860,000 715,000 125,125 589,875 107,250 482,625 193,050 $289,575 $173,745 $115,830 Year 1 $3,250,000 2,665,000 585,000 113,750 471,250 81,250 390,000 156,000 $234,000 $140,400 $93,600 Year 1 $185,250 617,500 1,080,625 1,883,375 1,204,125 $4,168,125 $3,087,500 Year 2 $250,088 833,625 1,458,844 2,542,557 1,625,568 Cash and cash equivalents Receivables Inventory Sales Expenses1 EBITDA Depreciation and amortization expense Current assets Net fixed assets Total assets Liabilities and Equity: Accounts payable Interest expense EBT $625,219 406,392 875,306 1,906,917 802,364 2,709,281 291,769 1,167,075 1,458,844 $463,125 301,031 Tax expense (40%) Net income Common dividends Addition to retained earnings 1Excludes depreciation and amortization Notes payable Total current liabilities 1,412,531 Long-term debt Total liabilities Common stock ($1 par) Retained earnings 2,006,875 216,125 864,500 1,080,625 $4,168,125 $3,087,500 Total equity Total debt and equity Shares outstanding Weighted average cost of capital 291,769 216,125