1.) Compute and Interpret Altman's Z-scores

Following is selected financial information for Netflix, for 2018 and 2017.

Note: Complete the entire question in Excel and format each answer to two decimal places. Then enter the answers into the provided spaces below with two decimal places.

In thousands, except per share data	2018	2017
Current assets	$11,148,255	$8,820,470
Current liabilities	6,487,320	5,466,312
Total assets	29,870,560	21,864,653
Total liabilities	23,845,980	17,745,404
Shares outstanding	502,089	498,402
Retained earnings	2,942,359	1,731,117
Stock price per share	308.00	191.96
Sales	15,794,341	13,446,620
Earnings before interest and taxes	1,846,010	838,679

Compute and interpret Altman Z-scores for the company for both years.

	Year	Z-score
	2017	Answer
	2018	Answer

Is the company's bankruptcy risk increasing or decreasing over this period? Answer Increasing Decreasing

2.) Bankruptcy Risk and Z-Score Analysis

Following are selected ratios for Tesla for two recent fiscal years.

Note: Complete the entire question in Excel and format each answer to two decimal places. Then enter the answers into the provided spaces below with two decimal places.

Ratio	2018	2017
Current ratio	1.135	0.831
Working capital to total assets	0.942	0.8430
Retained earnings to total assets	(0.177)	(0.1788)
EBIT to total assets	(0.002)	(0.0549)
EBITDA to total assets	0.061	0.0527
Market value of equity to total liabilities	3.790	3.1830
Sales to total assets	1.616	1.2950

Compute and interpret Altman Z-scores for the company for both years.

	Year	Z-score
	2017	Answer
	2018	Answer