You are the Senior Credit Analyst at your bank. Miss Simpson, your Junior Credit Analyst, has presented the following data supplied by New Edge Company Ltd, a company listed on the Jamaica Stock Exchange, Junior Market. New Edge recently had a fire and is just in the process of reconstructing their financial database. They have now applied for a loan to purchase computer and other equipment. Miss Simpson has now asked for your assistance in the computation of the Z-score for the company for 2020. Data supplied by The New Edge Company Ltd for year ended 30/09/ All sales are on credit. Good are sold on a 60% mark-up on purchase price for good sold Cost of goods sold $80,000,000 Total assets turnover................................... 2.5 times Cash to total assets...................................... 5.0% Accounts receivable turnover 10.0 times Inventory turnover .................................... 8.0 times Current ratio................................................ 2.0 times Debt to total assets...................................... 60.50% EBIT to Sales ratio .. 20% Total Equity as at 30/09/2019 was $15,000,000 and all profits for 2020 was retained. Authorized shares: 30,000,000 shares at par value of $0.50 Issued shares: 20,000,000 shares at par value of $0.50 The bank had also reviewed the companys loan accounts for years ended September 30, 2018 and 2019 and have the following Z-scores on file. 30/09/2018 - Z = 1.80; 30/09/2019 - Z = 2.8 The following information has been gleaned from the Jamaica Stock Exchange website. Market price for each share of New Edge Company Ltd common stock was as follows: January 3, 2020 - $0.78 September 30, 2020 - $1.00 January 3, 2019 - $0.52 September 30, 2019 - $0.54 January 3, 2018 - $0.44; September 30, 2018 - $0.48 a) Complete the following template and use the information derived from it to assist in computing New Edge Company's Z score for 2020. Show all workings.(28 Marks) New Edge Company Ltd Balance Sheet as at September 2020 Assets Liabilities and Stockholders Equity Cash ............................. _____ Accounts payable............................... _____ Accounts receivable...... _____ Long-term debt.................................. _____ Inventory...................... _____ Total debt.......................................... _____ Total current assets _____ Equity................................................ _____ Fixed assets .................. _____ Total assets ........... _____ Total debt and stockholders equity _____ Sales $ Gross profit

b) Briefly comment on the individual Z score for each year as it relates to a lending decision for New Edge Company Ltd (2 marks)