point Sve Amer "Arkan" Corporation started over the past decade. Few years later, "Arkan" was listed on the Dubai Financial Market DFM (share price equal 1.3 USD). The company has businesses in many offshore locations. The company has had developed efficient Operation management over the past decade. Table 1: Statement of financial position of "Arkan" at 31st December 2020 Consolidated 2020 (5000) Current assets Cash 10400 Receivables 33 600 Inventories 13 000 Total current assets 57 000 Noncurrent assets Receivables 12 000 Investments 17 000 Property, plant and equipment 16.000 Total noncurrent assets 45 000 TOTAL ASSETS 102 000 Current liabilities Accounts payable 11 000 Borrowings 15 000 Total current liabilities 26 000 Noncurrent liabilities Borrowings 45 000 Provisions 1 000 Total noncurrent liabilities 46 000 TOTAL LIABILITIES 72 000 2020 (5000) Current assets TO 400 33 600 13 000 57 000 12 000 17 000 16 000 45 000 102 000 Receivables Inventories Toral current assets Noncurrent assets Receivables Investments Property, plant and equipment Toral noncurrent assets TOTAL ASSETS Current liabilities Accounts payable Borrowings Total current liabilities Noncurrent liabilities Borrowings Provisions Total noncurrent liabilities TOTAL LIABILITIES Shareholder's equity Share capital Retained earnings TOTAL SHAREHOLDER'S EQUITY 11 000 15 000 26000 45 000 1.000 46 000 72 000 18 000 12 000 30 000 Number of shares on issue 40 000 Table 2. Income Statement of Arkana 45 000 1 000 46 000 72 000 Provisions Total noncurrent liabilities TOTAL LIABILITIES Shareholder's equity Share capital Retained earnings TOTAL SHAREHOLDER'S EQUITY 18 000 12 000 30 000 Number of shares on issue - 40 000 Table 2: Income Statement of "Arkan" at 31st December 2020 Net sales Cost of goods sold Gross profit Operating expenses EBIT Interest Net profit Dividends 2020 (5000) 62 000 50 000 12 000 18 000 (6 000) 30 000 (36 000) Questions a. Using the above financial statements, calculate the Altman's Z score. Number of shares on issue - 40 000 Table 2: Income Statement of "Arkan" at 31st December 2020 Net sales Cost of goods sold Gross profit Operating expenses EBIT Interest Net profit Dividends 2020 (5000) 62 000 50 000 12 000 18 000 (6 000) 30 000 (36 000) Questions a. Using the above financial statements, calculate the Altman's Zscore. b. Would you accept to lend to "Arkan company according to Altman's Z score? Formula sheet X, Current assets - current liabilities Total Assets Cost of goods sold Gross profit Operating expenses EBIT Interest Net profit Dividends 62 000 50 000 12 000 18.000 (6 000) 30 000 (36 000) Questions a Using the above financial statements, calculate the Altman's Z score b. Would you accept to lend to "Arkan' company according to Altman's Zscore? Formula sheet Current assets-current liabilities Total Assets X, Retained Earnings Total Assets EBIT X Total Assets Market Value of Equity Book Value of total Liabilities Net Sales Questions Using the above financial statements, calculate the Altman's Zscore. b. Would you accept to lend to "Arkan company according to Altman's Zscore? Formula sheet Current assets current liabilities * - Total Assets Retained Earnings Total Assets EDIT X; Total Assets Market Value of Equity X4 Book Value of total Liabilities Xs Net Sales Total Assets For the toolbar, press ALT+F10 (PC) or ALT FN+F10 Mac). Arial BI U. Paragraph 14px > 11 > int
