How do you find NOWC?

December 31, Year 2 Assets : Cash and cash equivalents Receivables Inventory Current assets Net fixed assets Total current assets Liabilities and Equity: Accounts payable Accruals Notes payable Total current liabilities Long-term debt Total liabilities Common stock ($1 par) Retained earnings Total equity Total liabilities and equity Shares outstanding Weighted average cost of capital Year 2 $239,400 798,000 $2,433,900 1,556,100 $598,500 389,025 837,900 $1,825,425 768,075 $2,593,500 279,300 1,117,200 $1,396,500 279,300 7.98% Year 1 $171,000 570,000 997,500 $1,738,500 1,111,500 $427,500 277,875 598,500 $1,303,875 548,625 $1,852,500 199,500 798,000 $997,500 199,500 7.30% Metric EVA Calculation Net operating profit after-tax (NOPAT) Investor-supplied operating capital Weighted average cost of capital Dollar cost of capital Return on invested capital (ROIC) Economic Value Added (EVA) Year 2 $311,850 7.98% $72,360 Year 1 7.30% 0/0 Percentage Change 19.48 0/0 40.00% 53.04% -14.63% 0/0 Using the change in Western G&E's EVA as the decision criterion, which type of investment recommendation should you make to your clients? O A hold recommendation O A buy recommendation o A sell recommendation Which of the following statements are correct? Check all that apply. Western G&E's NCF is calculated by adding its annual interest expense to the corresponding year's net income. An increase in the number of common shares outstanding must increase the market value of the firm's equity. Western G&E's net income is growing at a rate greater than its sales. This could imply that either its revenues are growing more quickly than its expenses or that management is being effective in managing its costs while achieving the reported growth in sales. Other things remaining constant, either event should increase the value of the firm. The percentage change in Western G&E's EVA indicates that management has decreased its value. For any given year, one way to compute Western G&E's EVA is as the difference between its NOPAT and the product of its operating capital and its weighted average cost of capital.