The following balance sheet and income statement are for Weber Industries. The firm€™s stock currently is priced at $6.00 per share. Calculate and interpret the company€™s Z score.
Weber Industries
Balance Sheet As of December 31, 2012

Weber Industries Income Statement for the Year
Ending December 31, 2012
Sales: ..................... $6,000,000
Less: Cost of goods sold ............ (3,500,000)
Less: Selling and administrative expenses ...... (1,000,000)
Earnings before interest and taxes ......... $1,500,000
Less: Interest .................. 1,100,000
Earnings before taxes .............. $ 400,000
Less: Taxes (39%) ................ 120,000
Net income .................. $ 280,000

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Assets Liabilities and Stockholder's Equity Cash Accounts receivable Inventories S 400,000 Accounts payable 3,000,000Notes payable bank 4,000,000l current liabilities S 5,000,000 000,000 S 6.000.000 S 4,000,000 6.000,000 S10.000.000 8.000.000 Preferred stock (100.000 shares) S 1.000.000 1,000,000 Total curent assets S 7.400.000 Mortgage Land Net plant Net equipment S1,000,000 Debentures 5,000,000l long-term debt Total fixed $14.000.000 Common stock (500.000 shares) assets Total Assets $21400.000 Paid-in capital in excess of par Retained earnings 2,000,000 .400.000 S5.400.000 Total shareholders equity Total liabilities and equity $21.400.000