Arcket, Inc

question 49

Multiple Choice

Arcket, Inc. is a publicly traded nonmanufacturing company. The following information is available from its financial statements: Net working capital $200,000
Retained earnings $125,000
Earnings before Interest and taxes $375,000
Market value of equity $1,015,000
Book value of total debt $1,750,000
Total assets $2,500,000
Sales $1,500,000
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

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Definitions:

Actual Authority

The explicit power granted to an agent by a principal, either through oral or written agreement, allowing the agent to act on the principal's behalf.

Express Authority

Authorization granted to an agent in clear, direct, and definite terms by the principal.

Implied Authority

Authority not expressly granted but assumed to be given due to the nature of a job or position.

Apparent Authority

A form of authority that an agent seems to have because of actions or representations made by the principal, leading third parties to reasonably believe the agent is authorized.