Exhibit 5.23 presents selected financial data for The Tribune Company and The Washington Post Company for fiscal 2006 and 2007. The Washington Post Company is an education and media company. It owns, among others, Kaplan, Inc.; Cable ONE Inc.; Newsweek magazine; and Washington Post Media. The Tribune Company is a media and entertainment company, which also is diversified, owning the Chicago Tribune, the Los Angeles Times, television and radio affiliates such as The CW Network and WGN, and the Chicago Cubs. The Tribune Company filed for bankruptcy in December 2008.

REQUIRED
a. Compute Altman€™s Z-score for The Tribune Company and The Washington Post Company for fiscal 2006 and 2007.
b. How did the bankruptcy risk of The Tribune Company change between fiscal 2006 and 2007? Explain.
c. How did the bankruptcy risk of The Washington Post Company change between fiscal 2006 and 2007? Explain.
d. The Tribune Company filed Chapter 7 bankruptcy in December 2008. Using the analysis from Requirements b and c, would you have predicted The Tribune Company or The Washington Post Company to file bankruptcy? Explain.

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Exhibit 5.23 Select Financial Data for The Tribune Company and The Washington Post Company (amounts in millions, except per-share amounts) (Problem 5.21) Tribune Washington Post 2007 2006 2007 2006 Sales $5,063 $5,444 $4,180 $3,905 Net income (loss) before interest and taxes $1,085 $619 $505 $544 Net income (loss) $87 $594 $289 $324 Current assets $1,385 $1,346 $995 $935 $6,005 Total assets $13,150 $13,401 $5,381 Current liabilities $2,190 $2,549 $1,013 $812 $16,664 $(3,474) Total liabilities $9,081 $2,543 $2,222 Retained earnings (deficit) Common shares outstanding Market price per share $3,138 $4,330 $4,120 307 239 10 10 $45.04 $58.69 $759.25 $711.53