2018 $ 000's 2019 $ 000's Current Assets - $ 3,059 2,801 Total Assets - $ 2,977 2,334 Current Liabilities - $ 1,169 1,525 Non Current Liabilities - 1,630 523 1,425 1,237 Retained Earnings - $ Sales - $ 2,871 2,521 Stock price - $ 8.00 12.00 EBIT - $ 275 183 No. of shares 95,000 95,000 2.2) Based on the information above; calculate the Z-score for the two years 2018 and 2019. (12 marks) 2.3) You are required to make a judgement of the financial health of the company for two years, and give your reasons for the change. (4 marks) (Total 20 marks) Question 2 Altman's Z-score model emerged as: Z = 1.2X + 1.4X + 3.3X3 + 0.6X4 + 1.0X5 Where X = working capital / total assets X = retained earnings / total assets X3 = earnings before interest and taxes / total assets X4 = market value of equity / total liabilities X5 = sales / total assets 2.1) the following values were observed in a public company: X = 0.38; X = 0.23; X3 = 0.07; X4 = 0.18; X = 0.74 Explain your assessment of the Z-score justifying same. (4 marks) Table below shows some key information (in $ 000's) for the years 2018 and 2019 for a public company. 2018 $ 000's 2019 $ 000's Current Assets - $ 3,059 2,801 Total Assets - $ 2,977 2,334 Current Liabilities - $ 1,169 1,525 Non Current Liabilities - 1,630 523 1,425 1,237 Retained Earnings - $ Sales - $ 2,871 2,521 Stock price - $ 8.00 12.00 EBIT - $ 275 183 No. of shares 95,000 95,000 2.2) Based on the information above; calculate the Z-score for the two years 2018 and 2019. (12 marks) 2.3) You are required to make a judgement of the financial health of the company for two years, and give your reasons for the change. (4 marks) (Total 20 marks)