Arcket,Inc Calculate and Interpret the Altman's Z-Score for Arcket,Inc

Multiple Choice

Arcket,Inc.is a publicly traded nonmanufacturing company.The following information is available from its financial statements: $$\begin{array} { l r } \text { Net working capital } & \$ 200,000 \\\text { Retained earnings } & \$ 125,000 \\\text { Eamings before Interest and taxes } & \$ 375,000 \\\text { Market value of equity } & \$ 1,015,000 \\\text { Book value of total debt } & \$ 1,750,000 \\\text { Total assets } & \$ 2,500,000 \\\text { Sales } & \$ 1,500,000\end{array}$$ Calculate and interpret the Altman's Z-score for Arcket,Inc.

A) 1.6084; Bankrupt
B) 2.312; Zone of ignorance
C) 1.40816; Zone of ignorance
D) 2.9108; Non-bankrupt