Below is selected information for Cari Corp. and Nick, Inc. for fiscal 2014. Compute each company'sZ-score and provide an analysis of whether either company is expected to go bankrupt in the near-------------future.- -- .Cari Corp.$683,140Nick, Inc.$488,974Current assetsCurrent liabilities445,6911,187,598527,5881,027,966Total assets|Total liabilities632,855211,000884,771289,455Shares outstandingRetained earningsStock price per share296,988-25,412$47.86$9.56Sales1,254,110288,977855,74118,569Earnings before interest and taxes

Z score is used to assess if the company has the risk of going bankrupt. Note: retained earnings for…

Below is selected information for Cari Corp. and Nick, Inc. for fiscal 2014. Compute each company's Z-score and provide an analysis of whether either company is expected to go bankrupt in the near future. Cari Corp. $683,140 Nick, Inc. $488,974 Current assets Current liabilities 445,691 527,588 1,027,966 Total assets 1,187,598 Total liabilities 632,855 211,000 884,771 289,455 Shares outstanding Retained earnings Stock price per share -25,412 296,988 $47.86 $9.56 Sales 1,254,110 288,977 855,741 18,569 Earnings before interest and taxes

Below is selected information for Cari Corp. and Nick, Inc. for fiscal 2014. Compute each company's Z-score and provide an analysis of whether either company is expected to go bankrupt in the near future. Cari Corp. $683,140 Nick, Inc. $488,974 Current assets Current liabilities 445,691 527,588 1,027,966 Total assets 1,187,598 Total liabilities 632,855 211,000 884,771 289,455 Shares outstanding Retained earnings Stock price per share -25,412 296,988 $47.86 $9.56 Sales 1,254,110 288,977 855,741 18,569 Earnings before interest and taxes

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

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4
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