Applying the updated z-score method described in ?

Applying the updated z-score method described in ?How We May Predict Bankruptcy? by Sauer (second page of article), calculate the z-scores for the following companies and decide if the firm should grant trade credit to each of these companies. Use the excel spreadsheet to complete your assignment.

$ Millions

Company A

Company B

Working Capital (WC)

16,932

5,109

Total Assets (TA)

235,968

150,269

Retained Earnings (RE)

72,655

15,392

Earnings before interest and taxes (EBIT)

26,234

3,270

Net Worth (NW)

102,113

9,994

Total Liabilities (TL)

133,855

140,257

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