Assume the following information is given: Income statement Net sales sh. 200,000 Operating income 10,000 Balance sheet Current assets 95,000 Total assets 150,000 Current liabilities 80,000 Total liabilities 125,000 Retained earnings 25,000 The market value of equity is sh. 300,000 Required: Evaluate the credit worthiness of the borrower using Altman Z
Assume the following information is given: Income statement Net sales sh. 200,000 Operating income 10,000 Balance sheet Current assets 95,000 Total assets 150,000 Current liabilities 80,000 Total liabilities 125,000 Retained earnings 25,000 The market value of equity is sh. 300,000 Required: Evaluate the credit worthiness of the borrower using Altman Z
College Accounting, Chapters 1-27 (New in Accounting from Heintz and Parry)
22nd Edition
ISBN:9781305666160
Author:James A. Heintz, Robert W. Parry
Publisher:James A. Heintz, Robert W. Parry
Chapter15: Financial Statements And Year-end Accounting For A Merchandising Business
Section: Chapter Questions
Problem 4CE
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Question
Assume the following information is given:
Income statement
Net sales sh. 200,000
Operating income 10,000
Balance sheet
Current assets 95,000
Total assets 150,000
Current liabilities 80,000
Total liabilities 125,000
The market value of equity is sh. 300,000
Required:
Evaluate the credit worthiness of the borrower using Altman Z
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