You are provided with extracts from financial statement of ABC limited for the year ended 31,December 2011.

ABC LIMITED

STATEMENT OF FINANCIAL POSITION

Net equipment -1610000

Cash-480000

Debtors -650000

Stock-2080000

Long term debt(10%)-1610000

Shareholders equity-1500000

Trade creditors-870000

Notes payables(9%)short term-840000

STATEMENT OF INCOMES

Sales-6100000

Less cost of sales-3600000

Gross profit-2500000

Less expenses

Selling expenses-650000

Administration-1120000

Interest charge -235600

Profit before tax-494400

Tax-177760

Net profit-316640

Additional information

The market price of ABC LTD is shs 5 par value shs.1

Retaimed earnings are shs.467640

Shareholders equity comprises only of share capital and retained earnings

Required.

Calculate the athmans z score for ABC limited and interpret it.