Question

In: Finance

Given the selected financial statement data presented below, calculate the Altman Z-score for KRJ Enterprises. From...

Given the selected financial statement data presented below, calculate the Altman Z-score for KRJ Enterprises. From the balance sheet, current assets of $540 million, total assets of $1,454 million, current liabilities of $262 million, total liabilities of $878 million, and total equity of $500 million, which includes retained earnings of $370 million. From the income statement, sales of $1,008 million, operating income (EBIT) of $322 million, and net income of $163 million. The company has 36 million shares of common stock outstanding, which are valued at $28.31 per share. What would be the Altman Z-score for this company? Present your answer to two decimal places. e.g. 20.00.

Solutions

Expert Solution

Altmand Z score is given as =

Z-Score = 1.2(working capital / total assets) + 1.4(retained earnings / total assets) + 3.3(earnings before interest and tax / total assets) + 0.6(market value of equity / total liabilities) + 1.0(sales / total assets)

Working capital is given as = Current assets - Current liabilites= 540-262= 278

Market value of equity = Number of shares * price of shares=36*28.31=1019.6

hence Z score = 1.2(278 / 1454) + 1.4(370 / 1454) + 3.3(322 / 1454) + 0.6(1019.6 / 878) + 1.0(1008 / 1454)

=1.2*(0.191197)+1.4*0.25447+3.3*0.221458+0.6*1.160774+1*0.69326

=0.22944+0.35626+0.73081+0.69646+0.69326

=2.70623

or 2.71

jeff jeffy answered 2 years ago
Next > < Previous

Related Solutions

Given the selected financial statement data for KRJ Enterprises presented below, calculate the debt-to-capital ratio, using...
Given the selected financial statement data for KRJ Enterprises presented below, calculate the debt-to-capital ratio, using total financial debt in the numerator. Present your answer in percentage terms, rounded to two decimal places, e.g., 20.00%. Cash $122 Short-term investments $209 Accounts receivable $438 Inventory $515 Other current assets $171 Fixed assets (net) $1,027 Intangible assets $205 Long-term investments $316 Total assets $3,052 Short-term debt $161 Current portion of long-term debt $57 Accounts payable $259 Accrued liabilities $232 Other current liabilities...
Selected financial statement data (in $ thousands) for KRJ Enterprises are listed below, calculate the interest...
Selected financial statement data (in $ thousands) for KRJ Enterprises are listed below, calculate the interest coverage ratio. Present your answer rounded to two decimal places. e.g. 20.00. Sales $10,183 Cost of goods sold 5,676 Cash operating expenses 1,844 Depreciation expense 497 Interest expense 174 Tax expense 213 Footnotes report that $240 of lease expenses are included in cash operating expenses, $26 of interest expenditures were capitalized during the year, and $538 of debt was repaid during the year.
Selected data from the financial statements of KRJ Manufacturing are presented below. Calculate the return on...
Selected data from the financial statements of KRJ Manufacturing are presented below. Calculate the return on assets for the year, presenting your answer in percentage terms, rounded to two decimal places. e.g. 20.00%. Sales $117,358 Gross profits $51,639 Operating profits (EBIT) $32,879 Earnings before taxes (EBT) $25,389 Net profits $24,739 Tax expense 8,000 Depreciation expense $13,207 Total assets, beg of year $80,302 Total assets, end of year $99,082 Total equity, beg of year $46,237 Total equity, end of year $53,675...
Selected financial statement data for KRJ Enterprises are listed below. Calculate the debt service coverage ratio....
Selected financial statement data for KRJ Enterprises are listed below. Calculate the debt service coverage ratio. Present your answer rounded to two decimal places. e.g. 20.00. Sales $12,866 Cost of goods sold 9,015 Cash operating expenses 1,969 Depreciation and amortization expense 327 Interest expense 171 Tax expense 232 Footnotes report that $165 of lease expenses are included in cash operating expenses, $21 of interest expenditures were capitalized during the year, and $296 of debt was repaid during the year.
Selected financial statement data for KRJ Enterprises are listed below, calculate the EBITDA coverage ratio. Present...
Selected financial statement data for KRJ Enterprises are listed below, calculate the EBITDA coverage ratio. Present your answer rounded to two decimal places. e.g. 20.00. Sales $12,341 Cost of goods sold 7,642 Cash operating expenses 2,168 Depreciation and amortization expense 359 Interest expense 184 Tax expense 220 Footnotes report that $239 of lease expenses are included in cash operating expenses, $72 of interest expenditures were capitalized during the year, and $4,387 of debt was repaid during the year.
Selected data from the financial statements of KRJ Manufacturing are presented below. Calculate the gross profit...
Selected data from the financial statements of KRJ Manufacturing are presented below. Calculate the gross profit margin, presenting your answer in percentage terms, rounded to two decimal places. e.g. 20.00%. Sales $107,262 Cost of goods sold $51,727 Operating profits (EBIT) $32,852 Earnings before taxes (EBT) $28,308 Net profits $18,706 Tax expense 8,310 Depreciation expense $14,562 Total assets, beg of year $89,075 Total assets, end of year $83,449 Total equity, beg of year $42,951 Total equity, end of year $40,310 Cash...
Selected financial statement information and additional data for Johnston Enterprises is presented below. Johnston Enterprises Statement...
Selected financial statement information and additional data for Johnston Enterprises is presented below. Johnston Enterprises Statement of Financial Position and Income Statement Data                                                                                           December 31,        December 31,                                                                                               2019           2018 Property, Plant, and Equipment                           HK$1,241,000     HK$ 1,122,000 Less: Accumulated Depreciation                             (477,000)           (442,000)                                                                                   764,000            680,000 Current Assets: Inventory                                                                391,000             340,000 Accounts Receivable                                            238,000                 306,000 Cash                                                                     154,000                 119,000 Total Current Assets                                     783,000                 765,000 Total Assets                                                         HK$1,547,000      HK$1,445,000 Equity: Share Capital–Ordinary                                 HK$ 510,000        HK$...
Selected financial statement information and additional data for Johnston Enterprises is presented below: Johnston Enterprises Balance...
Selected financial statement information and additional data for Johnston Enterprises is presented below: Johnston Enterprises Balance Sheet and Income Statement Data December 31, 2017 December 31, 2016 Current Assets:       Cash $170,300 $116,400       Accounts Receivable 226,300 306,200       Inventory 396,700 342,700             Total Current Assets 793,300 765,300 Property, Plant, and Equipment 1,283,200 1,148,000 Less: Accumulated Depreciation (460,400) (429,100) Total Assets 1,616,100 1,484,200 Current Liabilities:       Accounts Payable $189,000 $100,700       Notes Payable 48,100 66,300       Income Taxes Payable 85,900 76,100 Total Current Liabilities 323,000 243,100 Bonds...
Selected financial statement information and additional data for Johnston Enterprises is presented below: Johnston Enterprises Balance...
Selected financial statement information and additional data for Johnston Enterprises is presented below: Johnston Enterprises Balance Sheet and Income Statement Data December 31, 2017 December 31, 2016 Current Assets:       Cash $153,260 $117,200       Accounts Receivable 236,100 306,600       Inventory 397,700 343,800             Total Current Assets 787,060 767,600 Property, Plant, and Equipment 1,271,200 1,136,000 Less: Accumulated Depreciation (453,900) (420,900) Total Assets 1,604,360 1,482,700 Current Liabilities:       Accounts Payable $189,800 $100,100       Notes Payable 50,100 66,500       Income Taxes Payable 84,700 75,100 Total Current Liabilities 324,600 241,700 Bonds...
Selected financial statement information and additional data for Johnston Enterprises is presented below Johnston Enterprises Balance...
Selected financial statement information and additional data for Johnston Enterprises is presented below Johnston Enterprises Balance Sheet and Income Statement Data                                                                                           December 31,      December 31,                                                                                               2017                       2016___ Current Assets: Cash                                                                        $153,000               $119,000 Accounts Receivable                                                 238,000                 306,000 Inventory                                                                    391,000                 340,000 Total Current Assets                                            782,000                 765,000 Property, Plant, and Equipment                                1,241,000              1,122,000 Less: Accumulated Depreciation                                (476,000)               (442,000) Total Assets                                                             $1,547,000            $1,445,000 Current Liabilities: Accounts Payable                                                    $187,000               $102,000 Notes Payable                                                             51,000                   68,000 Income Taxes Payable                                         ...
ADVERTISEMENT
Subjects
ADVERTISEMENT
Latest Questions
ADVERTISEMENT