Calculate the Altman Z score for both years. Would you give a loan to the company? Below

Calculate the Altman Z score for both years. Would you give a loan to the company?

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Below you can find "Alpha Logistics" financial statements for 2020 and 2019 (all amounts are in euro): Balance Sheet Statement-Alpha Logistics Assets 2020 2019 Liabilities & Stockholders' Equity 2020 2019 Current Assets Cash & cash equivalents 450,000 450,000 Net Receivables Inventories Other Current Assets Total Current Assets Current Liabilities Creditors 1,350,000 1,125,000 Other current liabilities 1,650,000 1,200,000 Total Current Liabilities 150,000 150,000 3,600,000 2,925,000 Long-term Liabilities Bank Loan 753,600 675,000 1,500,000 1,350,000 2,253,600 2,025,000 3,300,000 1,725,000 1,207,000 1,105,000 3,030,500 1,670,000 Total Liabilities 1,087,500 825,000 Non-current Assets Land Buildings and Equipment Intangible assets Total Non-currents Assets 5,325,000 3,600,000 Total Stockholders' Equity 3,371,400 2,775,000 Total Long-term Liabilities 3,300,000 1,725,000 5,553,600 3,750,000 Shareholders' Equity Common Stock Retained earnings 1,875,000 1,875,000 1,496,400 900,000 Total Assets Total Liabilities and 8,925,000 6,525,000 Stockholders' Equity 8.925,000 6,525,000 Income Statement- Alpha Logistics Sales COGS 2020 7,500,000 2019 4,500,000 (4,800,000) (2.700,000 Gross Income 2,700,000 1,800,000 Selling, general and administrative expenses (SG&A) (1,500,000) 1.350,000) Earnings before interest and taxes (EBIT) 1,200,000 450,000 Interest Expenses (360,000) (165,000) Pretax income 840,000 285,000 Taxes Net Income (243,600) (82.650) 596,400 202.350 Below you can find "Alpha Logistics" financial statements for 2020 and 2019 (all amounts are in euro): Balance Sheet Statement-Alpha Logistics Assets 2020 2019 Liabilities & Stockholders' Equity 2020 2019 Current Assets Cash & cash equivalents 450,000 450,000 Net Receivables Inventories Other Current Assets Total Current Assets Current Liabilities Creditors 1,350,000 1,125,000 Other current liabilities 1,650,000 1,200,000 Total Current Liabilities 150,000 150,000 3,600,000 2,925,000 Long-term Liabilities Bank Loan 753,600 675,000 1,500,000 1,350,000 2,253,600 2,025,000 3,300,000 1,725,000 1,207,000 1,105,000 3,030,500 1,670,000 Total Liabilities 1,087,500 825,000 Non-current Assets Land Buildings and Equipment Intangible assets Total Non-currents Assets 5,325,000 3,600,000 Total Stockholders' Equity 3,371,400 2,775,000 Total Long-term Liabilities 3,300,000 1,725,000 5,553,600 3,750,000 Shareholders' Equity Common Stock Retained earnings 1,875,000 1,875,000 1,496,400 900,000 Total Assets Total Liabilities and 8,925,000 6,525,000 Stockholders' Equity 8.925,000 6,525,000 Income Statement- Alpha Logistics Sales COGS 2020 7,500,000 2019 4,500,000 (4,800,000) (2.700,000 Gross Income 2,700,000 1,800,000 Selling, general and administrative expenses (SG&A) (1,500,000) 1.350,000) Earnings before interest and taxes (EBIT) 1,200,000 450,000 Interest Expenses (360,000) (165,000) Pretax income 840,000 285,000 Taxes Net Income (243,600) (82.650) 596,400 202.350

Answer rating: 100% (QA)

The Altman Zscore is a measure of a companys creditworthiness and likelihood of bankruptcy To calcul... View the full answer