Assets Cash Accounts Receivables Inventories Fixed Assets Total iABC Ltd Balance Sheet (in millions of dollars) Liabilities $400 Accounts Payable $300 1,750 Accrued Taxes 200 1,250 Bills Payable 900 5,000 Long-term debt 3,000 Equity 4,000 $8,400 Total $8,400 iABC Ltd Income Statement (in millions of dollars) Sales Revenue $5,000 Cost of Goods Sold 3,500 Interest 1,500 Taxes @30% Consider the Altman's Z-score. WC Altman Z = 1.2 x + 1.4 X TA RE TA +3.3 x EBIT TA +1.0 x Sales TA MVE + 0.6 x BVLTD Where WC = Working Capital, TA = Total Assets, RE = Retained Earnings, MVE=Market Value of Equity and BVLTD = Book Value of Long-Term Debt.