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Given the financial statements, calculate the profit margin, leverage multiplier, quick ratio, account received payable period in 2009, and determine its bankruptcy risk in 2009
Given the financial statements, calculate the profit margin, leverage multiplier, quick ratio, account received payable period in 2009, and determine its bankruptcy risk in 2009 using Altman's Z-score. You must show work to receive full credit on this question. 2009 Balance Sheet as of December 31 2007 is sets Cash S 2,000 S Accounts receivable 3,000 Income Statement Year Ending December 31 2007 2009 Sales S 12,000 S 19,000 Cost of good sold 7,200 12,000 Depreciation expense 1,200 1,500 Selling & General Administrative expense 700 1,000 Interest expense 1,300 1,200 Income before taxes S 1,600 S 3,300 Income tax expense 700 1,440 Vet Income S 900 S 1,860 2,200 3,300 Inventory Current assets Fixed assets at cost Accumulated depreciation Met fixed assets Total assets 4,000 S 9,000 S 22,000 (9,000) 13,000 S 22,000 S 4,200 9,900 24,300 (10 500 13,800 23,700 S S Liabilities and Equin Accrued expenses Accounts payable Current liabilities Long-term debt Common stock Retained earnings Total liabilities and equity 1,600 S 2,400 4,000 S 15,000 2.000 1,000 22.000 S 1,760 2,640 4,100 15,004 2.300 1.996 23,700 S
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