Required
a. Compute Altman's Z-score for Old America Stores and Levitz Furniture for fiscal Year 6 and Year 7.
b. How did the bankruptcy risk of Old America Stores change between fiscal Year 6 and Year 7? Explain.
c. How did the bankruptcy risk of Levitz Furniture change between fiscal Year 6 and Year 7? Explain.

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Old America Stores Year Ended January: Levitz Furniture Year Ended March: Year 7 Year 6 Year 7 Sales Net Income (Loss) before Interest and Taxes Net Income (Loss) $134,605 $117,943 965,855 S 986,622 7,560 3,9 7,986 4,154 S 42,208 (27,586) (23,753) 198,046 606,867 $ 217,915 S 674,539 43,859 2 3 9 2 Total Liabilities Retained Earnings (Deficit) S 36,150 9,537 4,515 28,323 $1,028,440 5,627 4,483 30,321 7.50 8.137 2.125 30,321 2.50 Market Price Per Share