Question
You Consider investing a company and want to estimate the financial health status of this company. The current assets of the company is 179,000 and
You Consider investing a company and want to estimate the financial health status of this company. The current assets of the company is 179,000 and current liability is 9,000. Total assets are 670,000. Earnings before interest and taxes are 60,000. Sales are 2,200,000. The market value of equity is 380,000. Total liabilities are 240,000. The retained earnings is 300,000. What is the Z score of this company. Do you think this company is financially healthy? (Round Numbers to Three Decimal Places)
A. 5.459; The company is financially healthy
B. 5.459; The company is in grey area
C. 5.659; The company is financially healthy
D. 5.659; The company is NOT financially healthy
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