Bowden Building Supplies Ltd. year-end financial statements show working capital at $1,107,655, total assets of $3,971,090, total liabilities at $2,078,405, retained earnings at $192,685, sales revenue at $5,460,400, EBIT at $326,746, and the market value of common shares at $2,182,020. Using the value from Altman's Z-score model, what can be concluded about the business?
A) Will probably fail in two years.
B) Will probably survive over the next two years.
C) Difficult to classify with any degree of confidence.
D) Will probably fail in three to five years.
E) Will probably expand significantly in the next two years.
Correct Answer:
Verified
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