Client 1: When I was three years old, I started making candy with my grandmother. I am now 10 and I want to sell chocolate candy with a farm theme to my friends and family. My product ideas
include Brown Cows (chocolate cows on a stick), Pigs in Mud (marshmallow dipped in caramel,
nuts and chocolate) and Farm Eggs (jelly beans dipped in chocolate). The start-up expenses for my
business are pretty small: a few candy molds, candy and chocolate.) My parents have agreed to
loan me the money I will need and to let me work in the family kitchen. Schoolwork has to take
priority over business so if I have more sales than I can handle, I will probably ask friends or my
older brother to help. My brother is also pretty good at math and computers so he could help me
with keeping track of my expenses and advertising. I really like the product development and
packaging part of the business.
Which business type should they form?

This problem has been solved! see the answercompute and interpret altman's z-scoresfollowing is selected financial information for ebay, for its fiscal years 2005 and 2006.(in millions, except per share data) 2006 2005current assets $ 4,970.59 $ 3,183.24current liabilities 2,518.39 1,484.93total assets 13,494.01 11,788.99total liabilities 2,589.38 1,741.00shares outstanding 1,368.51 1,404.18retained earnings 4,538.35 2,819.64stock price per share 30.07 43.22sales 5,969.74 4,552.40earnings before interest and taxes 1,439.77 1,445.18compute and interpret altman z-scores for the company for both years. (do not round until your final answer; then round your answers to two decimal places.)2006 z-score = answer2005 z-score = answerwhich of the following best describes the company's likelihood to go bankrupt given the z-score in 2006 compared to 2007.the z-score in 2006 is half of the 2005 score. both z-scores are well above the score that represents a healthy company.the z-score in 2006 is double the 2005 score. the z-score has increased sharply, which suggests the company has greatly increased the risk of bankruptcy.the z-score in 2006 is half of the 2005 score. the z-score has decreased sharply, which suggests the company is in financial distress.the z-score in 2006 is double the 2005 score. the z-score has increased sharply, which suggests the company has greatly lowered the risk of bankruptcy.