The SOFP of Tribulations ltd for the year 2021 is as follows:

Fixed Assets	Ksh. ‘000’
Intangible	123,000
Tangible	2,079,500
Investments	10,000
	2,212,500
Current Assets
Stocks	479,000
Debtors	1,774,500
Cash and short-term investments	5,000
	2,258,500
Current liabilities
Trade creditors	956,500
Bank overdraft	504,000
Other curent liabilities	152,500
	1,613,000
Net working capital	645,500
Total assets	2,858,000
Long-term Loans	124,000
Other long-term liabilities	33,000
total non-current liabilities	157,000
Share capital (10 Million shares of ksh 30 each)	300,000
Profit and loss account
Brought forward	1,896,500
Retained for year	504,500
Shareholder fund	2,701,000
Long-term liabilities & shareholders funds	2,858,000

Income statement of Tribulations Limited for the year to December 31 2021

	Ksh.’000’
Sales revenue	1,900,000
Less: Cost of Sales	(880,000)
Gross Profit	1,020,000
Less: operating Expense	(270,000)
Earnings before interest and taxes	750,000
Interest Expense	(130,000)
Profit before tax	620,000
Less: Income Tax Expense	(92,000)
Profit after tax	528,000
Less: proposed dividends	(23,500)
Retained earnings	504,500

Assume that the market value of the company’s stocks at the year-end was ksh 300 per share and the company generated a negative cash flow in the year amounting to ksh 93 Million.

Required:

Use the following models to assess the financial strength or otherwise of the company;

a) Altman’s model Z=1.2WC/TA + 1.4 RE/TA + 3.3 EBIT/TA + 0.6 MVE/TL + 1.0 SL/TA

b) The Springate model Z = 1.03A + 3.07B + 0.66C + 0.4D

c) Fulmer model H = 5.528 (V1) + 0.212 (V2) + 0.073 (V3)+ 1.270 (V4) - 0.120 (V5) + 2.335 (V6)+ 0.575 (V7) + 1.083 (V8) + 0.894 (V9)- 6.075