Question
Z-Score Fair-to-Midland Manufacturing, Inc., (FMM) has applied for a loan at True Credit Bank. Jon Fulkerson, the credit analyst at the bank, has gathered the
Z-Score Fair-to-Midland Manufacturing, Inc., (FMM) has applied for a loan at True Credit Bank. Jon Fulkerson, the credit analyst at the bank, has gathered the following information from the company's financial statements:
Total assets
$ 75,000
EBIT
6,900
Net working capital
3,400
Book value of equity
19,000
Accumulated retained earnings
16,800
Sales
92,000
The stock price of FMM is $21 per share and there are 5,000 shares outstanding. What is the Zscore for this company?
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Accounting Principles
Authors: Jerry J. Weygandt, Paul D. Kimmel, Donald E. Kieso
10th Edition
1119491630, 978-1119491637, 978-0470534793
