General Company€™s financial statements for 2011 follow here and on the following pages:

Required
a. Compute the Z score of General Company at the end of 2011.
b. According to the Altman model, does the Z score of General Company indicate a high probability of financialfailure?

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GENERAL COMPANY Statement of Income Years Ended December 31, 20, 2010, and 2009 2011 2010 2009 Net sales Cost and expenses: S860,000 S770,000 $690,000 630,000 40,000 3,900 673,900 96,100 24,000 72,100 S 4.10 Cost of products sold 730,000 46,000 580,000 38,000 6,500 624,500 65,500 21,000 S 44,500 S 2.54 Selling, general, and administrative Interest and debt expense 4,000 Income before in Provision for income taxes Net income Net income per share 780,000 80,000 33,000 S 47,000 S 2.67 come taxes