Compute and interpret the Z-score Balance sheets and income statements for Lockheed Martin Corporation follow. Refer to these financial statements to answer the requirements Consolidated Statements of Earnings Year Ended December 31 milions 2016 2015 Net als Products 5 40.365 $34368 Services 6.893 5.668 Totalne ses 40536 Cost of sales Products 36601,001) Services 16,6400 Severance and other charges 1500 Other unallocated costs Total cost of a 421) Gross Profe Other coment Operating promet 182 220 Otherton-perating income (op.net Earnings before taxes Income tax expert Met earnings from continuing operations Narning from discontinued operations Net Garning 30 4836 (1.133 (1.1730 2753 $5300 $ 3.606 2016 2015 $ 1,837 8.202 $ 1.090 7,254 4.819 4.670 399 441 969 15.108 14.573 5.549 5.389 10.764 10.695 4.092 4,022 6,625 6,068 5,667 5.396 3.161 $ 47,806 $ 49,304 Consolidated Balance Sheets December 31 (in millions, except par value) Assets Current Assets Cash and cash equivalents Receivables.net Inventories, net Other current assets Assets of discontinued operations Total current assets Property, plant and equipment, net Goodwill Intangible assets, net Deferred income taxes Other noncurrent assets Assets of discontinued operations Total assets Liabilities and stockholders' equity Current Liabilities Accounts payable Customer advances and amounts in excess of costs incurred Salaries, benefits and payroll taxes Current maturities of long-term debt Other current liabilities Liabilities of discontinued operations Total current liabilities Long-term debt Accrued pension liabilities Other post-retirement benefit liabilities Other noncurrent liabilities Liabilities of discontinued operations Total Liabilities Stockholders' equity Common stock, 51 par value per share Additional paid-in capital Retained earnings Accumulated other comprehensive loss Total stockholders equity Noncontrolling interests in subsidiary Total equity Total liabilities and stockholders' equity $1,653 $ 1.745 6.776 6.703 1.764 1.707 956 2.349 1.859 948 12.542 14.282 13,855 862 13.918 14.305 11,807 1,070 4.659 4.902 205 46,200 46.207 289 303 13.324 14.238 (12.102) (11,444) 1.511 3.097 95 1,606 3.097 $ 47,806 $ 49,304 2016 2015 $5.302 $3,605 1.215 149 1,026 138 (445) 102 (152) 99 (1.242) (104) Consolidated Statement of Cash Flows Year Ended December 31 (in millions) Operating Activities Net earnings Adjustments to reconcile net earnings to net cash provided by operating activities: Depreciation and amortization Stock-based compensation Deferred income taxes Severancecharges Gain on divestiture of IS& GS business Gain on step acquisition of AWE Changes in operating assets and liabilities: Receivables, net Inventories, net Accounts payable Customer advances and amounts in excess of costs incurred Post-retirement benefit plans Income taxes Other, net Net cash provided by operating activities Investing Activities Capital expenditures Acquisition of business/investments in affiliated Othernet Net cash used for investing activities Financing Activities Special cash payment from divestiture of 152.G5 business Repurchases of common stock Proceeds from stock option exercises Dividends paid Proceeds from the issuance of long-term debt Repayments of long-term debt Proceeds from borrowings under revolving credit facilities Repayments from borrowings under revolving credit facilities Othernet Net cash (used for) financing activities Net change in cash and cash equivalents Cash and cash equivalents at beginning of year Cash and cash equivalents at end of year (811) (46) (188) 3 1,028 146 (210) 5.189 (256) (398) (160) (32) 1,068 (48) 501 5.101 (1.063) (939) (9.003) 78 208 (985) (9.734) 1.800 (2.096) (3,071) 106 174 (2.048) (1.932) 9.101 (952) 6.000 (6.000) (267) 5 (3,457) 4.277 747 (356) 1,090 1,446 $ 1.837 $ 1.090 As of December 31, there were the approximate shares outstanding 2016-28 milion 2015 - 303 millon As of December 31, the company's stock dosed at the following values 2016-5240 2015 - 5219.80 (2) Compute and compare the Atman Z-scores for both years. Do not round until your finansaver, then round your answers to two decimal places) 2016 Z-score 2015 2-score Which of the following explain the trend in the scores from 2015 to 2016Select all that apply Lockheed improved its working capital by decreasing its currentables Lockheed decreased its liquidity due to an increase in retained earnings Lockheed improved its earnings before interest and taxes by increasing ts total net sales. The market value of Lockheeds couly improved over the year ibi Which of the following statements et describes the company's Allmon scores? Both the Atman Z-scores are above 3.00 which indicate the company has a very low probability of bankruptcy Both the Atman 2-scores are below 1.80 which indicate the company has a very high probability of bariery The Altman Zscores have increased from 2015 to 2016 which indicates the company's bankruptcy risk has decreased The Atman Z-scores have decreased from 2015 to 2016 which indicates the company's bankruptcy risk has increased