Already have an account? Get multiple benefits of using own account!
Login in your account..!
Remember me
Don't have an account? Create your account in less than a minutes,
Forgot password? how can I recover my password now!
Enter right registered email to receive password!
Problem - Compute and Interpret Altman's Z-scores
Following is selected financial information for Netflix, for 2018 and 2017.
$ thousands, except per share data
2018
2017
Current assets
$9,694,135
$7,669,974
Current liabilities
6,487,320
5,466,312
Total assets
25,974,400
19,012,742
Total liabilities
20,735,635
15,430,786
Shares outstanding
436,598,597
433,392,686
Retained earnings
2,942,359
1,731,117
Stock price per share
267.66
191.96
Sales
15,794,341
11,692,713
Earnings before interest and taxes
1,605,226
838,679
Required -
1. Compute and interpret Altman Z-scores for the company for both years.
2. Which of the following best describes the company's likelihood to go bankrupt given the z-score in 2017 compared to 2018.
a. The z-score in 2018 increased. Z-scores for both years are in the gray area indicating some risk of bankruptcy.
b. The z-score in 2018 increased, which suggests the company's risk of bankruptcy has increased.
c. The z-score in 2018 increased. Z-scores for both years indicate low bankruptcy potential in the short terms.
d. The z-score in 2018 decreased, which suggests the company's risk of bankruptcy has decreased.
Which of the following would be included in the adjusting entry, dated December 31, Year 1, to recognize interest accrued since the issuance date?
inventories - cost of goods manufacturedinformation for the acme manufacturing company followsbeginning raw materials
Find What are sources of additional paid in capital. Distinguish among: cash dividends, property dividends, liquidating dividends and stock dividends?
Compute the physical units of production and compute equivalent units of production for materials and for conversion costs.
Compute the total number of shares entitled to dividends. Jan. 5 Subscribed 5,000 ordinary shares for 110.00 per share, with 40% down payment.
What is the dollar difference in the present value per share of common stock between both scenarios? Dividend by the end of 2020 is expected to grow
Labor and material costs total $750 per block, and fixed costs are $150,000 per year. Assume a 32% tax rate and a 12% discount rate.
What is appropriate journal entry if direct materials of $50,000 and indirect materials of $3000 are sent to the manufacturing plant floor?
Sales and administrative costs will be $150,000 every year. Production costs will be $500 / unit in the first year. What is the sunk cost of the TW project
Describe the data points found in the annual report that relate to the company's capital constraints and spending trends. Explain overall health of the company
This price strategy characterizes the behavior of discounters in all fields: Wal-Mart and Dollar General in retail, Southwest Airlines in air travel, and so on. When a large segment of buyers is sensitive to price, a low-active price strategy may be ..
Taxes were 5% of the net purchase price. Delivery terms were FOB shipping point. Determine the amount to be capitalized in an asset account
Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!
whatsapp: +1-415-670-9521
Phone: +1-415-670-9521
Email: [email protected]
All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd