Q7. Green & Co. has applied for a loan from the Trust Us Bank in order to invest in several potential opportunities. In order to evaluate the firm as a potential debtor, the bank would like to compare Green & Co. to the industry. The following are the financial statements given to Trust Us Bank: Assume all profits are retained as no dividend was paid out. (a) What is the Altman Z-Score for Black & Co.? Balance Sheet 12/31/88 Cash $305 Accounts receivable 275 Inventory 600 Current assets 1.180 Plant and equipment 1,700 Less: acc depr (500) Net plant and equipment 1,200 Total assets $2,380 Liabilities and Owners' Equity Accounts payable Notes payable Current liabilities Bonds Total owners' equity Total liabilities and owners equity' Income Statement Sales (100% credit) Cost of goods sold Gross profit Operating expenses Depreciation Net operating income Interest expense Net income before taxes Taxes Net income $150 125 275 500 1.605 $2.380 $1,100 600 500 20 160 320 256 87 $169 g