Question 1 Please Help Me To Arrive At The Correct Altman’S Zscore Based On The

EXHIBIT 8: COMPETITOR COMPANY DATA (IN US$ MILLIONS, FOR FISCAL YEAR ENDING
DECEMBER 2016 / JANUARY 2017)
Company
Dillard’s
KOHL’S
Macy’s
Nordstrom
Inc.
Corp.
Inc.
Inc.
Amazon
Inventory
1,375
4.038
5,506
1,945
11,461
Current Assets
1,669
5,076
7,652
3,014
45,781
Total Assets
3.866
13,606
20.576
7,698
83,420
Current Liability
751
2,714
5,728
2,911
43,816
Total Liability
2.070
8,115
16,326
6 827
64,117
Revenue
6,755
19.204
27.079
14.437
135,987
Gross Profit
2.404
6,939
10,583
5,269
65,932
Operating Profit
457
1,553
2,039
1,101
4,186
Net Profit
269
673
1,072
600
2,371
Source: Created by the case authors with information from quot;Dillard’s Inc. DOS: Income Statement,quot; Momingstar, accessed
March 20. 2018, https:/financials.morningstar.com/income statementis.html71=0P000001085culture=en-USamp;platform=sal;
quot;Kohl’s Corp KKS: Income Statement,quot; Momingstar, accessed March 20, 2018, https //financials.momingstar.comincome
statementis.html?t-OP0000035Zamp;culture=en-USamp;platform=sal; quot;Macy’s Inc. M: Income Statement,quot; Momingstar, accessed
March 20, 2018, https:/financials.morningstar.comincome-statementis.html?t=OP00000246amp; culture=en-USamp;platform=sal;
quot;Nordstrom Inc. JWN: Income Statement,quot; Momingstar, accessed March 20, 2018, https //financials.momingstar.com/income-
statement/is.html71=0P000003XPamp;culturemen-USamp;platform=sal; quot;Amazon.com Inc. AMZN: Income Statement,quot; Momingstar,
USamp;platform=sal.
accessed March 20, 2010, https:/financials.morningstar.com/income-statementis.him/71=0P00000087amp;culture=en-
EXHIBIT 9: Z-SCORE FORMULA FOR NON-MANUFACTURING FIRMS
X1 = (Current Assets – Current Liabilities) + Total Assets
X = Retained Earnings + Total Assets
X, = Earnings before Interest and Taxes + Total Assets
X4 = Book Value of Equity + Total Liabilities
Z-Score Bankruptcy Model: Z = 6.56(X1) + 3.26(X2) + 6.72(X3) + 1.05(Xq)
Zones of Discrimination: 2 gt; 2.9 = Safe Zone; 1.23 lt; Z lt; 2.9 = Grey Zone; Z lt; 1.23 = Distress Zone
A Z-score was calculated by substituting the values in the given formulas from the financial statements of
the company under investigation. The value indicated the company’s current degree of financial distress.
For example, a score of 1.1 indicated that the company had a very high probability of going bankrupt,
whereas a score of more than 2.9 indicated that the company was out of harm’s way.Managerial Accounting