Below are ratios for some of the firms that have appeared in this book, for their 1998 fiscal year.

a. Calculate Z-scores from these ratios.
b. Explain why Nike has a different Z- score from Reebok.
c. What reservations do you have about the Z-score as an indicator of credit worthiness?

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Working Capitat Total Assets Retained Earnings Total Assets Earnings beore Market Value Interest and Taxes of Equity Sales Total Assets Book Value of Liablities 15.4 9.0 0.7 Firm Assets 0.98 1.67 1.85 1.40 2.65 2.59 0.65 0.12 0.34 0.43 0.29 0.15 1.05 0.58 0.66 0.50 0.09 0.34 0.34 Coca-Ccla Reebok Hewiett-Packard Del, Inc. Gateway Computer 0.38 0.27 0.45 0.13 0.31 0.19 27.9 5.2 46.7