Problem 25-10 Predicting Bankruptcy

25.6 Predicting Bankruptcy

GM Financial Information (year-end 2004)
Current assets	$	55,519,000
Current liabilities	$	74,889,000
Retained earnings	$	14,426,000
Total assets	$	482,027,000
Total liabilities	$	451,880,000
Shares outstanding	565,100,204
Share price	$	29.31
Sales	$	193,518,000
EBIT		$	1,194,000
All values in thousands except share price and shares outstanding.

Compute the Z score for General Motors Corporation given the information above for year-end 2004. Round your answer to four decimal places.

At what share price would GM have a Z score equal to 3.00? Round your answer to the nearest cent. $

Based on its Z score, is GM likely to go bankrupt in the near future? YES or NO