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Fair-to-Midland Manufacturing, Inc., (FMM) has applied for a loan at True Credit Bank. Jon Fulkerson, the...

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Finance

Fair-to-Midland Manufacturing, Inc., (FMM) has applied for aloan at True Credit Bank. Jon Fulkerson, the credit analyst at thebank, has gathered the following information from the company’sfinancial statements:

  

  Total assets$111,000
  EBIT8,700
  Net working capital5,200
  Book value of equity37,000
  Accumulated retained earnings18,600
  Sales110,000

   

The stock price of FMM is $39 per share and there are 6,800shares outstanding. What is the Z-score for this company?(Do not round intermediate calculations and round youranswer to 3 decimal places, e.g., 32.161.)

  

  Z-score  

Answer & Explanation Solved by verified expert
4.3 Ratings (837 Votes)
Altman Z score ZScore 12A 14B 33C 06D 10E Where A Working Capital Total Assets B Retained Earnings Total Assets C Earnings before Interest Tax Total    See Answer
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Fair-to-Midland Manufacturing, Inc., (FMM) has applied for aloan at True Credit Bank. Jon Fulkerson, the credit analyst at thebank, has gathered the following information from the company’sfinancial statements:    Total assets$111,000  EBIT8,700  Net working capital5,200  Book value of equity37,000  Accumulated retained earnings18,600  Sales110,000   The stock price of FMM is $39 per share and there are 6,800shares outstanding. What is the Z-score for this company?(Do not round intermediate calculations and round youranswer to 3 decimal places, e.g., 32.161.)    Z-score  

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