Tilman Company Ltd has applied for a loan from the National Trust Bank ni order ot invest ni several potential opportunities. nI order ot evaluate the firm as a potential borrower, the bank would like ot compare Tilman Company ot the industry. The folowing are the financial statements given ot National Trust Bank. Assume al profits are retained for both periods as no dividend was paid out. Balance Sheet 12/31/2016 12/31/2017 Al figures including share aer ni (00,000) hundred thousand. Cash $225 $270 Accounts receivable 275 290 Inventory 500 580 Current assets 1,000 1,140 Plant and equipment 1,700 1,860 Less: accum. deprec. (320) (520) Net plant and equipment Total assets 528.0 5280 Liabilities and Owners' Equity Accounts payable $150 $200 Notes payable 25 Current liabilities 375 20 Bonds 405 460 Total owners' equity 1.600 1,820 Total liabilities and owners equity $2,380 $2.480 Income Statement Sales (100% credit) Cost of goods sold Gross profit Operating expenses Depreciation Net operating income (EBIT) Interest expense Net income before taxes Taxes Net income $1,100 $1,330 (600) (725) 500 605 (20) (25) (160) (200) 320 380 (64) (87) 256 293 (56) (73) $200 $220 Notes Authorised shares (common stock) 2,000; Issued and outstanding: 1,400 at $1.00 par value Market price for each share of common stock was as follows: January 2, 2016 - $1.25; December 31, 2016 - $1.30; January ,2 2017- $1.35; December 31, 2017 - $1.50 No dividend was paid ni either year, that is, al income was retained ni both years. (a) Use Altman Z-Score (for 2 years) ot decide whether or not you would lend five milion dolarsot hte above-mentioned company. Show al calculations supporting your conclusion.