Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Please answer, will leave a thumbs up! Each Z-score is the sum of 5 components, X1-to-X5. For your later-year Z-score (either 2020 or 2018) ,

Please answer, will leave a thumbs up!

Each Z-score is the sum of 5 components, X1-to-X5. For your later-year Z-score (either 2020 or 2018) , list in order each of the 5 values that add up to that later year's Z-score.

image text in transcribed

image text in transcribed

INDIVIDUAL EFFORT - NO HELP Z-Model 18 Pts EACH Yr. Compute Z-scores for 2 yrs X-1 Working Capital/Total Assets Z score > WGHT 12 2020 2019 X-1 > 1.4 X-2 Retained Earns/Total Assets Ret. Earns Tot Assets U | X-2 3.3 IX-3 EBIT/Total Assets EBIT Tot Assets x-> 0.6 COMPUTE THE Z-MODEL SCORE using data below millions of US Dollars INCOME STATEMENT 2020 2019 2018 Sales / Revenue (Net) 4,113 3,543 3,509 Cost of Goods Sold 3,012 2,605 2,574 Gross Profit (Loss) 1.100 938 935 Selling. General and Administrative Ex 847 768 767 Operating Inc Before Depreciation 253 170 168 Depreciation & Amortization - Total 90 85 84 Operating Income, EBIT 163 85 84 Interest (Exps or credit) - Net 1 4 -2 Pret-Tax Income & Other 164 89 82 Income Taxes Expense (Credit) 45 21 19 Income Before Extraordinary Items 119 68 63 NET INCOME (LOSS) 119 68 63 millions of US Dollars Current Assets 2020 2019 2019 Cash and Short-Term Investments - To 271 149 107 Receivables - Total 57 56 57 Inventories - Total 269 280 281 Current Assets - Other - Total 29 23 24 Current Assets Total 626 508 469 Property Plant & Equipment - Total (N 1,124 1,097 888 Intangible Assets - Total 70 70 75 Non-Current Assets Total 1,194 1,167 963 ASSETS TOTAL 1,820 1,676 1,432 millions of US Dollars Current Liabilities 2020 2019 2019 Debt in Current Liabilities 39 39 0 Account Payable/Creditors - Trade 222 181 191 Current Liabilities - Other 85 72 76 Current Liabilities Total 346 292 267 Long Term Debt Total 169 180 0 Deferred Taxes and Investment Tax Cr 103 97 91 Liabilities (Other) 56 48 51 Long-Term Liabilities Total 328 325 142 Liabilities Total 674 617 409 Common Stock issued 516 477 460 Retained Earnings 630 582 563 Shareholders' Equity TOTAL 1,146 1,059 1,023 LIABILITIES & SHAREHOLDER EQUITY 1 1,820 1,676 1,432 X-4 Market Val. Stock /Tot Liabilities Stock Price Stk Shares mill Market Capitalization Tot. Liabilities $ 50.00 $ 38.00 29.5 29.0 X-4 > 1.0 X-5 Net Sales/Total Assets Revenue Tot Assets X-5 > Individual Effort -no help 12 pts each year Calculate Free Cash Flow for 2 Yrs USE 25% INC.TAX RATE 2020 EBIT EBIT X (1..25 tax rate) 2019 Free Cash Flow millions of US Dollars NEW DATA PROVIDED -> INCOME STATEMENT 2020 2019 2018 Sales/Turnover (Net) 4,113 3,543 3,509 Cost of Goods Sold 3,012 2.605 2,574 Gross Profit (Loss) 1,100 938 935 Selling. General and Administrative Exp 847 768 767 Operating Inc Before Depreciation 253 170 168 Depreciation&Amortization - Total 90 85 84 Operating Income EBIT 163 85 Interest Net 1 4 -2 Pret Tax Income & Other 164 89 82 Income Taxes Expense (Credit) 45 21 19 Income Before Extraordinary Items 119 68 63 NET INCOME (LOSS) 119 68 63 CASH FLOW STATEMENT (in millions) OPERATING ACTIVITY 2020 2019 2018 Income Before Extraord 119 68 63 Depreciation.Amortizat 90 85 84 Adjustments to Net Inco 9 4 8 Inventory - Decrease ir 11 1 -1 Other Changes in Opera 49 14 -5 OPERATING ACTIVITIES 278 172 148 84 INVESTING ACTIVITY Capital Expenditures Other Cash Flow from in INVESTING ACTIVITIES - 2020 131 44 -175 2019 2018 101 96 -8 5 -109 -91 FINANCING ACTIVITY Cash Dividends FINANCING ACTIVITIES - 2020 33 -33 2019 2018 33 33 -33 -68 Current Assets Cash and Short Term Investments - To Receivables - Total Inventories - Total Current Assets - Other - Total Current Assets Total Non-Current Assets Property Plant and Equipment - Total Intangible Assets - Total Non Current Assets Total ASSETS TOTAL 2020 271 57 269 29 626 2019 149 56 280 23 508 2018 107 57 281 24 469 12pts ea. Calculate Free Cash Flow for 2 Yrs USE 25% INC.TAX RATE 2020 2019 EBIT EBIT x (1 - 25 tax rate) 1,124 1,097 70 70 1,194 1,167 1,820 1,676 888 75 963 1,432 Free Cash Flow Current Liabilities Debt in Current Liabilities Account Payable/Creditors - Trade Current Liabilities - Other Current Liabilities Total Long-Term Debt Total Deferred Taxes and Investment Tax Cro Liabilities (Other) Long-Term Liabilities Total Liabilities Total Shareholders' Equity Total LIABILITIES & SHAREHOLDER EQUITYT 2020 2019 2018 39 39 0 222 181 191 85 72 76 346 292 267 169 180 0 103 97 91 56 51 328 325 142 674 617 409 1,146 1,059 1,023 1,820 1,676 1,432 48 INDIVIDUAL EFFORT - NO HELP Z-Model 18 Pts EACH Yr. Compute Z-scores for 2 yrs X-1 Working Capital/Total Assets Z score > WGHT 12 2020 2019 X-1 > 1.4 X-2 Retained Earns/Total Assets Ret. Earns Tot Assets U | X-2 3.3 IX-3 EBIT/Total Assets EBIT Tot Assets x-> 0.6 COMPUTE THE Z-MODEL SCORE using data below millions of US Dollars INCOME STATEMENT 2020 2019 2018 Sales / Revenue (Net) 4,113 3,543 3,509 Cost of Goods Sold 3,012 2,605 2,574 Gross Profit (Loss) 1.100 938 935 Selling. General and Administrative Ex 847 768 767 Operating Inc Before Depreciation 253 170 168 Depreciation & Amortization - Total 90 85 84 Operating Income, EBIT 163 85 84 Interest (Exps or credit) - Net 1 4 -2 Pret-Tax Income & Other 164 89 82 Income Taxes Expense (Credit) 45 21 19 Income Before Extraordinary Items 119 68 63 NET INCOME (LOSS) 119 68 63 millions of US Dollars Current Assets 2020 2019 2019 Cash and Short-Term Investments - To 271 149 107 Receivables - Total 57 56 57 Inventories - Total 269 280 281 Current Assets - Other - Total 29 23 24 Current Assets Total 626 508 469 Property Plant & Equipment - Total (N 1,124 1,097 888 Intangible Assets - Total 70 70 75 Non-Current Assets Total 1,194 1,167 963 ASSETS TOTAL 1,820 1,676 1,432 millions of US Dollars Current Liabilities 2020 2019 2019 Debt in Current Liabilities 39 39 0 Account Payable/Creditors - Trade 222 181 191 Current Liabilities - Other 85 72 76 Current Liabilities Total 346 292 267 Long Term Debt Total 169 180 0 Deferred Taxes and Investment Tax Cr 103 97 91 Liabilities (Other) 56 48 51 Long-Term Liabilities Total 328 325 142 Liabilities Total 674 617 409 Common Stock issued 516 477 460 Retained Earnings 630 582 563 Shareholders' Equity TOTAL 1,146 1,059 1,023 LIABILITIES & SHAREHOLDER EQUITY 1 1,820 1,676 1,432 X-4 Market Val. Stock /Tot Liabilities Stock Price Stk Shares mill Market Capitalization Tot. Liabilities $ 50.00 $ 38.00 29.5 29.0 X-4 > 1.0 X-5 Net Sales/Total Assets Revenue Tot Assets X-5 > Individual Effort -no help 12 pts each year Calculate Free Cash Flow for 2 Yrs USE 25% INC.TAX RATE 2020 EBIT EBIT X (1..25 tax rate) 2019 Free Cash Flow millions of US Dollars NEW DATA PROVIDED -> INCOME STATEMENT 2020 2019 2018 Sales/Turnover (Net) 4,113 3,543 3,509 Cost of Goods Sold 3,012 2.605 2,574 Gross Profit (Loss) 1,100 938 935 Selling. General and Administrative Exp 847 768 767 Operating Inc Before Depreciation 253 170 168 Depreciation&Amortization - Total 90 85 84 Operating Income EBIT 163 85 Interest Net 1 4 -2 Pret Tax Income & Other 164 89 82 Income Taxes Expense (Credit) 45 21 19 Income Before Extraordinary Items 119 68 63 NET INCOME (LOSS) 119 68 63 CASH FLOW STATEMENT (in millions) OPERATING ACTIVITY 2020 2019 2018 Income Before Extraord 119 68 63 Depreciation.Amortizat 90 85 84 Adjustments to Net Inco 9 4 8 Inventory - Decrease ir 11 1 -1 Other Changes in Opera 49 14 -5 OPERATING ACTIVITIES 278 172 148 84 INVESTING ACTIVITY Capital Expenditures Other Cash Flow from in INVESTING ACTIVITIES - 2020 131 44 -175 2019 2018 101 96 -8 5 -109 -91 FINANCING ACTIVITY Cash Dividends FINANCING ACTIVITIES - 2020 33 -33 2019 2018 33 33 -33 -68 Current Assets Cash and Short Term Investments - To Receivables - Total Inventories - Total Current Assets - Other - Total Current Assets Total Non-Current Assets Property Plant and Equipment - Total Intangible Assets - Total Non Current Assets Total ASSETS TOTAL 2020 271 57 269 29 626 2019 149 56 280 23 508 2018 107 57 281 24 469 12pts ea. Calculate Free Cash Flow for 2 Yrs USE 25% INC.TAX RATE 2020 2019 EBIT EBIT x (1 - 25 tax rate) 1,124 1,097 70 70 1,194 1,167 1,820 1,676 888 75 963 1,432 Free Cash Flow Current Liabilities Debt in Current Liabilities Account Payable/Creditors - Trade Current Liabilities - Other Current Liabilities Total Long-Term Debt Total Deferred Taxes and Investment Tax Cro Liabilities (Other) Long-Term Liabilities Total Liabilities Total Shareholders' Equity Total LIABILITIES & SHAREHOLDER EQUITYT 2020 2019 2018 39 39 0 222 181 191 85 72 76 346 292 267 169 180 0 103 97 91 56 51 328 325 142 674 617 409 1,146 1,059 1,023 1,820 1,676 1,432 48

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Bond Markets Analysis And Strategies

Authors: Frank J Fabozzi

8th Edition

013274354X, 9780132743549

More Books

Students also viewed these Finance questions

Question

=+6. Select the one that would work best for this client.

Answered: 1 week ago