The following data are for the A, B, and C Companies:

Required

a. Compute the Z score for each company.

b. According to the Altman model, which of these firms is most likely to experience financial failure?

Company Variables Current assets A B C $150,000 $170,000 $180,000 Current liabilities $60,000 $50,000 $30,000 Total assets $300,000 $280,000 $250,000 Retained earnings $80,000 $90,000 $60,000 Earnings before interest and taxes $70,000 $60,000 $50,000 Market price per share $20.00 $18.75 $16.50 Number of shares outstanding 9,000 9,000 9,000 Book value of total debt $30,000 $50,000 Sales $430,000 $400,000 $80,000 $200,000