QUESTION $3(7$ MARKS$)$

The following data are for the $A,B,$ and $C$ Companies:

$\backslash$table$[[,$Company,,$],[$Variables$,$A$,$B$,$C$],[$Current assets,$$150,000,$$$170,000,$$$180,000,,],[$Current liabilities,$$60,000,$$$50,000,$$$30,000,,],[$Total assets,$$300,000,$$$280,000,$$$250,000,,],[$Retained earnings,$$80,000,$$$90,000,$$$60,000,,],[$Earnings before interest and taxes,$$70,000,$$$60,000,$$$50,000,,],[$Market price per share,$$20\mathrm{.}00,$$$18\mathrm{.}75,$$$9\mathrm{.}50,,],[$Number of shares outstanding,$9,000,9,000,9,000,,],[$Book value of total debt,$$30,000,$$$50,000,$$$80,000,,],[$Sales$,$$$430,000,$$$400,000,$$$200,000,,]]$

REQUIRED:

A$.$ Using MS Excel, compute the Z score for each company.

B$.$ According to the Altman model, which of these firms is most likely to experience financial failure?