On 1 st January 2017, Somerset Plc., a manufacturing company, leased a packaging equipment from Prowler Engineers, a company that specialises in making customized industrial machinery. The terms of the lease agreement provided the following: ● Somerset Plc. was to pay annual lease rentals of £200,000 at the beginning of every year under the lease period ● The implicit interest was 10% p. a. ● A residual value of £40,000 was unguaranteed ● The lease period was for 5 years which was equivalent to the economic life of the packaging equipment ● Depreciation was to be computed using the reducing balance method, at the rate of 25% p. a ● Interest over the lease period was to be spread using the sum-of-digits method At the time of entering into the lease agreement, Somerset Plc. had established that the incremental borrowing rate would be 12% p. a. Required a. Prepare journal entries to record the transactions that occur in each of the 5 years of the lease agreement b. Prepare extracts of the Statement of Profit or Loss and the Statement of Financial Position for each of the 5 years of the lease agreement.

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.