The following data are for the A, B, and C Companies:

Required
a. Compute the Z score for each company.
b. According to the Altman model, which of these firms is most likely to experience financialfailure?

Transcribed Image Text:

Company Variables Current assets Current liabilities Total assets Retained eamings Eamings before interest and taxes Market price per share Number of shares outstanding Book value of total debt Sales $150,000 S 60,000 $300,000 80,000 70,000 S 20.00 9,000 S 30,000 $430,000 $170,000 $180,000 50,000 30,000 $280,000 $250,000 90,000 60,000 60,000 50,000 S 18.75 16.50 9,000 50,000 80,000 $400,000 $200,000 9,000