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Make-ThemCorporation Consolidated Balance Sheet (in thousands except share data) Dec. 31, 2008 Fiscal Year Ended Current assets: Cash and cash equivalents Accounts receivable, net Inventories Prepaid expenses and other current assets Deferred income taxes, net Total current assets Property, plant and equipment, net Other assets TOTAL ASSETS Current liabilities: Accounts payable Accrued compensation and related costs Accrued taxes Current portion of long-term debt Long-term debt Total current liabilities ASSETS $ LIABILITIES AND SHAREHOLDERS' EQUITY Total liabilities Shareholders' equity: Common stock ($0.1 par value) - authorized, 4,000,000 shares; issued and outstanding, 3,500,000. Paid-in capital in excess of par Retained earnings Total shareholders' equity TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY Assume the following information for both years: f Net Profit Margin (NPM) was 4%. $ $ 369 58 489 107 43 1,066 5,137 1,168 7,371 429 104 132 89 754 2,630 3,384 350 2,415 1,222 3,987 7,371 $ $ Dec. 31, 2007 Interest rate on Long-term Debt 10% Times-Interest-earned was 5 times All of the Net Income was retained and Market price for each share of common stock was as follows: January 1, 2008 - $1.25; December 31, 2008 - $1.14; January 1, 2007-$1.10; December 31, 2007 - $0.86 427 76 481 226 40 1,250 3,287 1,661 6,198 242 98 141 82 563 2,630 3,192 350 2,415 241 3,006 6,198 a. Use Altman Z-Score to decide whether or not you would lend five million dollars to the abov mentioned company. Show all calculations supporting your conclusion.

Make-ThemCorporation Consolidated Balance Sheet (in thousands except share data) Dec. 31, 2008 Fiscal Year Ended Current assets: Cash and cash equivalents Accounts receivable, net Inventories Prepaid expenses and other current assets Deferred income taxes, net Total current assets Property, plant and equipment, net Other assets TOTAL ASSETS Current liabilities: Accounts payable Accrued compensation and related costs Accrued taxes Current portion of long-term debt Long-term debt Total current liabilities ASSETS $ LIABILITIES AND SHAREHOLDERS' EQUITY Total liabilities Shareholders' equity: Common stock ($0.1 par value) - authorized, 4,000,000 shares; issued and outstanding, 3,500,000. Paid-in capital in excess of par Retained earnings Total shareholders' equity TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY Assume the following information for both years: f Net Profit Margin (NPM) was 4%. $ $ 369 58 489 107 43 1,066 5,137 1,168 7,371 429 104 132 89 754 2,630 3,384 350 2,415 1,222 3,987 7,371 $ $ Dec. 31, 2007 Interest rate on Long-term Debt 10% Times-Interest-earned was 5 times All of the Net Income was retained and Market price for each share of common stock was as follows: January 1, 2008 - $1.25; December 31, 2008 - $1.14; January 1, 2007-$1.10; December 31, 2007 - $0.86 427 76 481 226 40 1,250 3,287 1,661 6,198 242 98 141 82 563 2,630 3,192 350 2,415 241 3,006 6,198 a. Use Altman Z-Score to decide whether or not you would lend five million dollars to the abov mentioned company. Show all calculations supporting your conclusion.

Managerial Accounting
Managerial Accounting
15th Edition
ISBN:9781337912020
Author:Carl Warren, Ph.d. Cma William B. Tayler
Publisher:Carl Warren, Ph.d. Cma William B. Tayler
Chapter15: Statement Of Cash Flows
Section: Chapter Questions
Problem 2PB
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Fiscal Year Ended Make-ThemCorporation Consolidated Balance Sheet (in thousands except share data) Dec. 31, 2008 ASSETS Current assets: Cash and cash equivalents Accounts receivable, net Inventories Prepaid expenses and other current assets Deferred income taxes, net Total current assets Property, plant and equipment, net Other assets TOTAL ASSETS Current liabilities: Accounts payable Accrued compensation and related costs Accrued taxes Current portion of long-term debt Long-term debt $ LIABILITIES AND SHAREHOLDERS' EQUITY Total current liabilities Total liabilities Shareholders' equity: Common stock ($0.1 par value)-authorized, 4,000,000 shares; issued and outstanding, 3,500,000. Paid-in capital in excess of par Retained earnings Total shareholders' equity TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY $ Assume the following information for both years: Net Profit Margin (NPM) was 4%. Interest rate on Long-term Debt 10% $ 369 58 489 107 43 1,066 5,137 1,168 7,371 429 104 132 89 754 2,630 3,384 350 2,415 1,222 3,987 $ 7,371 $ $ Dec. 31, 2007 Times-Interest-earned was 5 times All of the Net Income was retained and Market price for each share of common stock was as follows: January 1, 2008 - $1.25; December 31, 2008 - $1.14; January 1, 2007- $1.10; December 31, 2007 - $0.86 427 76 481 226 40 1,250 3,287 1,661 6,198 242 98 141 82 563 2,630 3,192 350 2,415 241 3,006 6,198 a. Use Altman Z-Score to decide whether or not you would lend five million dollars to the above- mentioned company. Show all calculations supporting your conclusion.
Transcribed Image Text:Fiscal Year Ended Make-ThemCorporation Consolidated Balance Sheet (in thousands except share data) Dec. 31, 2008 ASSETS Current assets: Cash and cash equivalents Accounts receivable, net Inventories Prepaid expenses and other current assets Deferred income taxes, net Total current assets Property, plant and equipment, net Other assets TOTAL ASSETS Current liabilities: Accounts payable Accrued compensation and related costs Accrued taxes Current portion of long-term debt Long-term debt $ LIABILITIES AND SHAREHOLDERS' EQUITY Total current liabilities Total liabilities Shareholders' equity: Common stock ($0.1 par value)-authorized, 4,000,000 shares; issued and outstanding, 3,500,000. Paid-in capital in excess of par Retained earnings Total shareholders' equity TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY $ Assume the following information for both years: Net Profit Margin (NPM) was 4%. Interest rate on Long-term Debt 10% $ 369 58 489 107 43 1,066 5,137 1,168 7,371 429 104 132 89 754 2,630 3,384 350 2,415 1,222 3,987 $ 7,371 $ $ Dec. 31, 2007 Times-Interest-earned was 5 times All of the Net Income was retained and Market price for each share of common stock was as follows: January 1, 2008 - $1.25; December 31, 2008 - $1.14; January 1, 2007- $1.10; December 31, 2007 - $0.86 427 76 481 226 40 1,250 3,287 1,661 6,198 242 98 141 82 563 2,630 3,192 350 2,415 241 3,006 6,198 a. Use Altman Z-Score to decide whether or not you would lend five million dollars to the above- mentioned company. Show all calculations supporting your conclusion.
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