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All the data for the chart is given in the 2nd picture. Answers for the chart are free-response. Answers for the question on the side
All the data for the chart is given in the 2nd picture. Answers for the chart are free-response. Answers for the question on the side are given. If correct, I will make sure to thumbs up, thank you!
Ryker, 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 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 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. Allied Biscuit Co. Income Statement January 1 - December 31, Year 2 Allied Biscuit Co. Balance Sheet December 31, Year 2 Year 2 $4,600,000 3,680,000 920,000 161,000 759,000 138,000 621,000 248,400 $372,600 Year 1 $4,000,000 3,280,000 720,000 140,000 580,000 100,000 480,000 192,000 $288,000 Assets: Cash and cash equivalents Receivables Year 2 $307,800 1,026,000 1,795,500 3,129,300 2,000,700 $5,130,000 Year 1 $228,000 760,000 1,330,000 2,318,000 1,482,000 $3,800,000 es Expenses1 EBITDA Depreciation and amortization expense Current assets EBIT Net fixed assets Interest expense Total assets EBT Liabilities and Equity: payable $769,500 500,175 1,077,300 2,346,975 987,525 3,334,500 359,100 1,436,400 1,795,500 $5,130,000 359,100 7.98% $570,000 370,500 798,000 1,738,500 731,500 2,470,000 266,000 1,064,000 1,330,000 $3,800,000 266,000 7.30% Tax expense (40%) Net income Common dividends Addition to retained earnings Excludes depreciation and amortization Accrua Notes payable $223,560 149,040 $172,800 Total current liabilities $115,200 Long-term debt Total liabilities Common stock ($1 par) Retained earnings Total equity Total debt and equity Shares outstanding Weighted average cost of capitalStep by Step Solution
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