1. For each year calculate the Altman Z score. Show all working.

Notes:

1. For the calculation of X₂, retained profits should be taken from the balance sheet.
2. For the calculation of X₄, use the following share prices, and note that the market value of equity refers to the number of shares on issue times the share price:

Year	2018	2019	2020
Share price	$1.24	$1.20	$1.28

3. Use the following set-out to derive your answers. Show your working. Note that the formulas are based on the formula sheet (taken from page 128 of Sathye et al.).

2018 2019 2020 X4 Category Working Capital X = Assets Retained Profits X2= Total Assets EBIT X3 = Total Assets Market Value of Equity Book value of total liabilities Sales X Total Assets X,x1.2 X, X1.4 X, 3.3 X, *0.6 X; x1.0 Altman's Z score: x x parameter 2018 2019 2020 X4 Category Working Capital X = Assets Retained Profits X2= Total Assets EBIT X3 = Total Assets Market Value of Equity Book value of total liabilities Sales X Total Assets X,x1.2 X, X1.4 X, 3.3 X, *0.6 X; x1.0 Altman's Z score: x x parameter