You are the Senior Credit Analyst at your bank. Miss Simpson, your junior Credit Analyst, has asked for your help in completing the financial analysis of Edge Company Ltd, a new company listed on the stock Market. New Edge recently had a fire in which much of its financial records were destroyed. They are just in the process of reconstructing their financial database. The company has some of their records for 2021 stored off- site and have retrieved them and were able to glean the following data.

Data supplied by the New Edge Company Ltd for year ended 30/09/21 (ALL SALES ARE ON CREDIT)

Goods are sold on a 70% mark-up on purchase price for goods sold

Cost of good sold..$ 180,000,000

Total asset turnover .2.55 times

Cash to total assets 5.50%

Account receivable turnover .9.0 times

Inventory turnover12.0 times

Current ratio 2.50

Debt to total assets62.50%

EBIT to Sales ratio.20%

Total equity as at 30/09/2020 was $24,600,000 and all profits for 2021was retained.

Authorized shares: 30,000,000 shares at par value of $ 0.50

Issued shared: 20,000,000 shares at par value of $ 0.50

The bank had also received the companys loan accounts for year ended September 30, 2019 and have the following Z-score on file.

30/09/2019-Z = 1.80 ; 30/09/2020 - Z = 2.8

The following information has been gleaned from the JSXwebsite

Market price each share of NEw Edge Company Limited common stock was as follows:

January 3, 2021 - $0.87 September 30, 2021 - $ 1.51

January 3, 2020 - $0.52 September 30, 2020 - $ 0.54

January 3, 2019 - $0.44 September 30, 2019 - $ 0.48

The company has now applied for a loan to purchase computers and other equipment.

Miss Simpson has now asked for your assistance in completing the computation of the Z-score for the company for 2021.

Required

1. Use the data supplied to compute the Z score of the company for the period 2021

Show all workings and complete the follow template in the process

New Edge Company Limited

Balance Sheet as at December 2021

Assets Liabilities and Stockholders Equity

Cash. Account payable

Account receivable Long term debt .

Inventory.. Total debt ..

Total Current Assets . Equity

Fixed Assets

Total assets Total debt and stockholders equity ..

Sales $ Gross Profit $