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Assume the following information is given: Income statement Net sales            sh. 200,000 Operating income               10,000 Balance sheet Current assets                   95,000 Total assets                  150,000 Current liabilities                  80,000 Total liabilities                            125,000 Retained earnings                  25,000  The market value of equity is sh. 300,000 Required: Evaluate the credit worthiness of the borrower using Altman Z

Assume the following information is given: Income statement Net sales            sh. 200,000 Operating income               10,000 Balance sheet Current assets                   95,000 Total assets                  150,000 Current liabilities                  80,000 Total liabilities                            125,000 Retained earnings                  25,000  The market value of equity is sh. 300,000 Required: Evaluate the credit worthiness of the borrower using Altman Z

Essentials Of Investments
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
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Assume the following information is given:
Income statement
Net sales            sh. 200,000
Operating income               10,000

Balance sheet
Current assets                   95,000
Total assets                  150,000

Current liabilities                  80,000
Total liabilities                            125,000
Retained earnings                  25,000
 The market value of equity is sh. 300,000
Required:
Evaluate the credit worthiness of the borrower using Altman Z

 

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