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The following is the balance sheet for Facebook, Inc. (in millions): Earnings before interest and taxes for Year 2 are $6,225, sales for Year 2

The following is the balance sheet for Facebook, Inc. (in millions):

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Earnings before interest and taxes for Year 2 are $6,225, sales for Year 2 are $17,928 million, and the market value of Facebook at the end of Year 2 is $221 billion. Altman's Z-score is

a. 1.6.
b. 27.7.
c. 26.7.
d. 27.1.
Year 1 Year 2 Assets Current assets: Cash and cash equivalents Marketable securities Accounts receivable Prepaid expenses and other current assets Total current assets Property and equipment, net Intangible assets, net Goodwill Other assets Total assets $ 4,315 $ 4,907 6,884 13,527 1,678 2,559 513 659 13,390 21,652 3,967 5,687 3,929 3,246 17,981 18,026 699 796 $39,966 $49,407 Liabilities and stockholders' equity Current liabilities: Accounts payable Partners payable Accrued expenses and other current liabilities Deferred revenue and deposits Current portion of capital lease obligations Total current liabilities $ 176 202 866 66 114 1,424 196 217 1,449 56 7 1,925 119 2,327 3,870 107 3,157 5,189 Capital lease obligations, less current portion Other liabilities Total liabilities Commitments and contingencies Stockholders' equity: Common stock Additional paid-in capital Accumulated other comprehensive loss Retained earnings Total stockholders' equity Total liabilities and stockholders' equity 30,225 34,886 (228) (455) 6,099 9,787 36,096 44,218 $39,966 $49,407

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