he Altmans Z score for a firm is estimated as follows:

Z = 1.2 X₁+ 1.4 X₂ + 3.3 X₃ + 0.6X₄ + 1.0 X₅

Where:

X₁ = Working Capital / Total Assets

X₂ = Retained Earnings / Total Assets

X₃ = EBIT / Total Assets

X₄ = Market Value of Equity/ Book Value of Total Liabilities

X₅= Sales /Total assets

A firms Financial Statement information in millions of dollars is given below:

Assets

Cash 40

Accounts receivables 150

Inventory 210

Plant and Equipment 1600

Total Assets 2000

Liabilities and Equity

Accounts Payable 70

Notes Payable 80

Accruals 70

Long-term debt 880

Equity (retained Earnings = 150) 900

Total Liabilities & Equity 2,000

Other Information

Sales = $ 1000 EBIT = $250

The Market Value of Equity is equal to 1.3 times the book value.

Estimate the Z-Score for the firm. Please show working for X₁ to X₅ on your answer script.

Calculate values up to 3 decimal places.