Question
Account Description Amount Sales $2,000,000 Operating income $50,000 Working capital $350,000 Total assets $1,920,000 Total liabilities $1,410,000 Retained earnings $360,000 Market value of stocks $970,000
| Account Description | Amount |
| Sales | $2,000,000 |
| Operating income | $50,000 |
| Working capital | $350,000 |
| Total assets | $1,920,000 |
| Total liabilities | $1,410,000 |
| Retained earnings | $360,000 |
| Market value of stocks | $970,000 |
1.- Using the information, calculate the Altmans Z-Score. Based on your analysis of the Z-Score, what is the status of the business?
2.- After analyzing the Z-Score and the different metrics needed to calculate the score, what is your opinion on the relevancy of the Z-Score?
3.- What outside factors can disrupt the accuracy of the score making it less dependable?
Make sure to show your work and provide a description.
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The Routledge Handbook Of Critical Finance Studies
Authors: Christian Borch, Robert Wosnitzer
1st Edition
1138079812, 978-1138079816
