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.
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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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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