Question: b. Using the Altmans model for privately held firms and public ones, calculate the Z-score for Sweet Dreams, Corp. Verify the change in 2012 Sweet
b. Using the Altmans model for privately held firms and public ones, calculate the Z-score for Sweet Dreams, Corp. Verify the change in 2012 Sweet Dreams, Corps ROE using the Du Pont method. Assume that the market value of Sweet Dreams, Corp. is 1200000.


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1 Seet Dreams, Corp. Income Statement For the Year Ended Dec, 31 2 2012 2011 3,074,000 2,567,000 2,088,000 1,711,000 986,000 856,000 8 Selling and G&A Exp 294,000295.000 35.00035,000 239.000 223.000 418,000 303,000 93.000 91.000 13 Earnings Before Taxes325,000 212,000 94,000 64,000 231,000148,000 4 5 Sales 6 Cost of Goods Sols Goss rofit 9 Fixed Expenses 10 Depreciation Expense 11 EBIT 12 Interest Expense 14 Taxes 15 Net Income 1 Seet Dreams, Corp. Income Statement For the Year Ended Dec, 31 2 2012 2011 3,074,000 2,567,000 2,088,000 1,711,000 986,000 856,000 8 Selling and G&A Exp 294,000295.000 35.00035,000 239.000 223.000 418,000 303,000 93.000 91.000 13 Earnings Before Taxes325,000 212,000 94,000 64,000 231,000148,000 4 5 Sales 6 Cost of Goods Sols Goss rofit 9 Fixed Expenses 10 Depreciation Expense 11 EBIT 12 Interest Expense 14 Taxes 15 Net Income
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