The following financial information was extracted from two companies listed on Zams Stock Exchange during the year ended $31$ October $2019.$

Vespas Ltd $($K$000)$ Harris Ltd $($K$0000)$

Total Assets $117766440$

Retained Earnings $27601520$

Gross Margin $25\%20\%$

Profit before interest and tax $46201860$

Current Assets $24001180$

Common Stock $58582800$

Total liabilities $31582120$

P$/$E Ratio $3\mathrm{.}8$ times $2\mathrm{.}8$ times

i$.$ The annual profits after tax for the two companies for the year ended $31$ October $2019$ were as follows: Vespas Ltd K$2272000$ Harris Ltd K$1200000$ ii$.$ The details of the two companies common stock were as follows: Vespas Harris

Authorised Shares $($numbers$)35000002000000$

Issued and fully paid shares $1010000800000$

iii. The shares of Vespas Ltd are sold in the market at $25\%$ margin above the par value, while those of Harris Ltd are based on the P$/$E ratio.

Required

a$)$ Calculate the Z$-$Score Index for each of the two companies. $(15$ Marks$)$ b$)$ Comment on the financial stability for each company. $(5$ Marks$)$

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QUESTION THREE $[23$ MARKS$]$

The following information was extracted from BETA company for the year