1. MKL Inc., a publicly traded manufacturing firm, has provided the following financial information in its application for a loan.

   Assets	$	Liabilities and equity	$
   Cash	50	Accounts payable	30
   Accounts receivables	130	Notes payable	90
   Inventory	140	Accruals	110
   		Long-term debt	140
   Plant and equipment	600	Equity	550
   Total assets	920	Total liabilities and equity	920

   Also assume sales = $450, cost of goods sold = $350, taxes = $56, interest payments = $40; the dividend payout ratio is 35 per cent and the market value of equity is equal to the book value.

   What is the Altman discriminant function value for MKL Inc.?

   	A.	2.43
   	B.	3.32
   	C.	1.72
   	D.	2.09