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please fill out the empty box by putting the correct number there is no cash flow statement given here this is all the information for
please fill out the empty box by putting the correct number
there is no cash flow statement given here this
Asher, 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 Year 1 Sales Expenses EBITDA Depreciation and amortization expense EBIT Interest expense EBT Tax expense (40%) Net income Common dividends Addition to retained earnings Excludes depreciation and amortization Year 2 $9,350,000 7,480,000 $1,870,000 327,250 $1,542,750 280,500 $1,262,250 504,900 $757,350 $454,410 $302,940 $8,500,000 6,970,000 $1,530,000 297,500 $1,232,500 212,500 $1,020,000 408,000 5612,000 $367,200 $244,800 Atherton Corp. Balance Sheet December 31, Year 2 Assets: Cash and cash equivalents Receivables Inventory Year 2 $557,175 1,857,250 3,250,188 $5,664,613 3,621,637 $9,286,250 Year 1 $484,500 1,615,000 2,826,250 $4,925,750 3,149,250 $8,075,000 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 $1,392,938 $1,211,250 905,409 787,313 1,950,1131,695,750 $4,248,460 $3,694,313 1,787,603 = 1,554,438 $6,036,063 $5,248,750 650,037 565,250 2,600,150 2,261,000 $3,250,187 $2,826,250 $9,286,250 $8,075,000 650,037 565,250 F1040 ndt Weighted average cost of capital 7.98% 7.30% To facilitate your analysis, complete the following table, and use the results to answer the related questions. (Note: Round all percentage change answers to two decimal places. If a dollar value is below $100, round your answer to two decimal places. If your answer is negative use a minus (-) sign.) Company Growth and Performance Metrics Metric Year 2 Year 1 Percentage Change General Metrics Sales $9,350,000 $757,350 $8,500,000 $612,000 $909,500 $3,366, 266 $1.08 $0.70 $5.00 0.00% 3.73% Net income Net cash flow (NCF) Net operating working capital (NOWC) Earnings per share (EPS) Dividends per share (DPS) Book value per share (BVPS) Cash flow per share (CFPS) Market price per share MVA Calculation Market value of equity Book value of equity Market Value Added (MVA) EVA Calculation $20.74 $19.75 20.76% $3,250,187 $2,826,250 $8,337,438 Wigerleil EVA Calculation $925,650 15.00% 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) 7.98% 7.30% 25.71% 8.87% $368,262 Using the change in Atherton's EVA as the decision criterion, which type of investment recommendation should you make to your clients? A buy recommendation O A sell recommendation O A hold recommendation Which of the following statements are correct? Check all that apply. Atherton's NCF is calculated by adding its annual depreciation and amortization expense to the corresponding year's EBITDA Investor-supplied operating capital is recorded as accounts payable, accruals, and short-term investments. The percentage change in Atherton's EVA indicates that management has increased its value. Atherton'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 For any niven vear one way to miste Atherton's FVA ic as the difference between ite NOPAT and the reduct of inneratina cantal is all the information for this exercise i posted
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