Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. finance
  3. q2. mno inc., a publicly traded manufacturing firm

Q2. MNO Inc., a publicly traded manufacturing firm in the United States, has provided the...

60.1K

Verified Solution

Question

Finance

image

Q2. MNO Inc., a publicly traded manufacturing firm in the United States, has provided the following financial information in its application for a loan. All numbers are in thousands of dollars Assets Cash Accounts receivables Inventory Liabilities and Equity Accounts payable Notes payable Accruals Long-term debt Equity (ret. earnings $22 400 Total liabilities and equityS700 S 20 90 90 S 30 90 30 Plant and equipment Total assets 500 S700 Also assume sales $500,000 cost of goods sold $360,000; and the market value of equity is equal to the book value a. What is the Altman discriminant function value for MNO Inc.? Recall that Net working capital Current assets Current liabilities Current assets = Cash + Accounts receivable + inventories. Current liabilities- Accounts payable + Accruals + Notes payable EBIT-Revenues Cost of goods sold Altman's discriminant function is given by: Z-1.2X1+ 1.4X2 + 3.3X3 + 0.6X4+ /.0X All numbers are in $000s b.Based on the Altman's Z-score only, should you approve MNO Inc.'s application to your bank for a S500,000 capital expansion loan

Answer & Explanation Solved by verified expert
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students

Biology
1.2K views

1.Suppose the codon is UUA, what is the anticodon?   2.What is tRNA? Why is it important?  

Medical Sciences
1.2K views

In the first and second trimester of pregnancy the uterus is relatively unresponsive to oxytocin but...

Programming
1.2K views

create a todo app using React and MongoDB. User can also delete the tasks, add tasks,...

Biology
1.2K views

Answer in your own words don t copy the answer off the internet 1 Write...

Calculus
1.2K views

81 Christina travels on one street for 1 750 meters She then turns and travels...

Algebra
1.2K views

The area 4 r in square meters of a circular algae colony with radius 7...

Algebra
1.2K views

Approximate the number using a calculator.e 2.4

Accounting
1.2K views

Luthan Company uses a plantwide predetermined overhead rate of $23.90 per direct labor-hour....

Accounting
1.2K views

please look at the data and answer questions 1 and 2 ...

Accounting
1.2K views

Troy Engines Ltd. manufactures a variety of engines for use in heavy equipment. The company...

Accounting
1.2K views

Inthestatementoffinancialposition,revenuesarelistedfirstfollowedbyexpenses,andnet income (or net loss). A) True B) False

Accounting
1.2K views

Locate the historical financial data of Starbuck (at least 5 years worth) from a financial...