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Please show me step by step for questions 1-4. FIN4100 Inc., a publicly traded manufacturing fim in the United States, has provided the following financial
Please show me step by step for questions 1-4.
FIN4100 Inc., a publicly traded manufacturing fim in the United States, has provided the following financial information in its application for a loan. All numbers are in thousands of dollars. Assets Cash Accounts receivables Inventory Liabilities and Equit $20 Accounts payable S60 100 40 240 400 100 Notes payable 120 Accruals Long-term debt Plant and equipment Total assets 600 Equity (ret. earnings- $22) S840 Total ailies and equity 840 Also assume that Sales Cost of good soldS350 Market value of equity is equal to the book value 650 (1) What is the Altman discriminant function value for FIN4100 Inc.? (2) Based on the Altman's Z-score only, should you approve FIN 4100 Inc.'s application to your bank for capital expansion loan? (3) If sales for FIN4100 were S550, the market value of equity was only half of book value, and all other values are unchanged, would your credit decision change? (4) Would the discriminant function change for firms in different industries, and (or) in different geographic sections of country? WhStep by Step Solution
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