UPENN: LOOSE LEAF CORP.FIN W/CONNECT
17th Edition
ISBN: 9781260361278
Author: Ross
Publisher: McGraw-Hill Publishing Co.
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Question
Chapter 30, Problem 4QP
Summary Introduction
To determine: The Z-score of the company.
Z-Score:
The Z-score or popularly renowned Altman Z-score is an indicator of the creditworthiness of a company which is likely to be bankrupt and is derived on the basis of five ratios, the values of which are represented in the annual report of the company. The companies scoring below 1.8 points are more prone to be bankrupt in the near future whereas the companies scoring 3 or above points are likely to survive.
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Students have asked these similar questions
Is the organization profitable? Why or why not?
Use the Hillside, Inc. Balance Sheet information in cells A2 through D18 and cells A21 through B38 to complete the Financial Performance Calculations in cells A40 through C60.
Table 1: Hillside, Inc. Balance Sheet ($ in Millions)
ASSETS
LIABILITIES
Cash & Marketable Securities
449.90
Accounts Payable
1,611.20
Accounts Receivable
954.80
Salaries Payable
225.20
Inventories
3,645.20
Other Current Liabilities
1,118.80
Other Current Assets
116.60
Total Current Liabilities
2,955.20
Total Current Assets
5,165.27
Other Liabilities
693.40
Machinery & Equipment
1,688.90
Land
1,129.70
Total Liabilities
3,648.60
Buildings
2,348.40
Depreciation
(575.60)
SHAREHOLDER'S EQUITY…
Study the following balance sheet to help you prepare for your upcoming interview for an entry-level analyst position at Galaxy Corporation.
Galaxy Corporation Balance Sheet
Cash
$656,250
Accounts payable
$1,575,000
Accounts receivable
$2,296,875
Accruals
$984,375
Inventory
$3,609,375
Notes payable
$1,378,125
Total current assets
$6,562,500
Total current liabilities
$3,937,500
Long-term debt
$6,562,500
Total debt
$10,500,000
Common equity
$2,100,000
Net plant and equipment
$10,937,500
Retained earnings
$4,900,000
Total equity
$7,000,000
Total assets
$17,500,000
Total liabilities and equity
$17,500,000
During your interview for an introductory-level analyst position at Galaxy Corporation, the interviewer asks you to complete the following table using the information provided in the preceding balance sheet.
Net Working Capital
$__________________________
Current Ratio…
Consider the following table, which is extracted from the company balance sheet andanswer the questions.
Items
Amount in OMR
Items
Amount in OMR
Prepayments
4,500
Cash
6,000
Account receivable
6,000
Marketable securities
3,000
Accruals
4,000
Accounts payable
5,000
Notes payable
3,500
Inventory
6,000
Short-term debt
6,000
Tax payable
2,000
Calculate the networking capital (NWC) for the company.B. How working capital is different from capital investments? Explain
Chapter 30 Solutions
UPENN: LOOSE LEAF CORP.FIN W/CONNECT
Ch. 30 - Prob. 1CQCh. 30 - Prob. 2CQCh. 30 - Prepackaged Bankruptcy What is prepackaged...Ch. 30 - Prob. 4CQCh. 30 - Prob. 5CQCh. 30 - APR What is the absolute priority rule?Ch. 30 - DIP Loans What are DIP loans? Where do DIP loans...Ch. 30 - Bankruptcy Ethics Firms sometimes use the threat...Ch. 30 - Bankruptcy Ethics Several firms have entered...Ch. 30 - Bankruptcy versus Private Workouts Why do so many...
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