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Can you do it by step/ give formula so i can see how you did the ratio analysis problem Asher, your newly appointed boss, has

Can you do it by step/ give formula so i can see how you did the ratio analysis problem

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Asher, 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 yea a neutral or "hold") recommendation if the value has remained constant, or a negative (or use 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 Balance Sheet Income Statement December 31, Year 2 December 31, Year 2 January 1 Year 2 Year 1 Assets Year 2 Year 1 $6,037,500 $5,750,000 Cash and cash equivalents $376,913 $327,750 Sales Receivables Expenses1 4,830,000 4,715,000 256,375 092,500 Inventory 2,198,656 911,875 EBITDA 207,500 035,000 Depreciation and amortization expense 211,313 201,250 Current assets 3,831,944 3,332,125 Net fixed assets 2,449,931 2,130,375 EBIT 996, 187 833,750 Total assets $6,281,875 $5,462,500 Interest expense 81,125 43,750 Liabilities and Equity: EBT 815,062 690,000 Accounts payable $942,281 $819,375 Tax expense (40%) 326,025 276,000 Accruals 612,483 532,594 Net income $489,037 $414,000 Notes payable 319,194 1,1 47,125 Common dividends $293,422 $248,400 Total current liabilities 2,873,958 2,499,094 Addition to retained earnings 95,615 65,600 Long-term debt 209,261 051,531 Excludes depreciation and amortization Total liabilities 4,083,219 3,550,625 Common stock ($1 par) 439,731 382,375 Retained earnings 758,925 529,500 Total equity 2,198,656 911,875 Total debt and equity $6,281,875 $5,462,500 Shares outstanding 439,731 382,375 Weighted average cost of capital 7.98% 7.30%

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