= MNO, Inc., a publicly traded manufacturing firm in the United States, has provided the following financial information in its application for a loan. All numbers are in thousands of dollars. Assets Liabilities and Equity Cash $ 20 Accounts payable $ 30 Accounts receivable 90 Notes payable 90 Inventory 90 Accruals 30 Long-term debt 150 Plant and equipment 500 Equity (retained earnings  $0) 400 Total assets $700 Total liabilities and equity $700 Also assume sales  $500, cost of goods sold  $360, taxes  $56, interest payments  $40, net income  $44, the dividend payout ratio is 50 percent, and the market value of equity is equal to the book value. What is the Altman discriminant function value for MNO, Inc.? Recall that: Net working capital  Current assets − current liabilities. Current assets  Cash + Accounts receivable + Inventories. Current liabilities  Accounts payable + Accruals + Notes payable. EBIT  Revenues − Cost of goods sold − Depreciation. Taxes  (EBIT − Interest) (Tax rate). Net income  EBIT − Interest − Taxes. Retained earnings  Net income (1 − Dividend payout ratio). Should you approve MNO, Inc.’s, application to your bank for a $500 capital expansion loan? If sales for MNO were $300, the market value of equity was only half of book value, and the cost of goods sold and interest were unchanged, what would be the net income for MNO? Assume the tax credit can be used to offset other tax liabilities incurred by other divisions of the firm. Would your credit decision change? Would the discriminant function change for firms in different industries? Would the function be different for retail lending in different geographic sections of the country? What are the implications for the use of these types of models by FIs?