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??? I. 20 POINTS In this problem you are required to compute and interpret bankruptcy prediction ratios. The information presented below relates to two competing
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I. 20 POINTS In this problem you are required to compute and interpret bankruptcy prediction ratios. The information presented below relates to two competing technology firms Data Systems Corp. and Analytics Inc. for years ended 2020 and 2021. They offer a wide range of tech products, repair services, etc. Recently they have faced a lot of competition from internet providers forcing prices to become significantly lower. In 2020 Analytics, Inc. filed bankruptcy. Parts of the financial statement for Analytics, Inc and Data Systems Corp. are shown below. Amounts are in thousands of dollars except per share amounts. 1. Calculate Altman's Z score for Data Systems Corp. and Analytics, Inc for both years 2020 and 2021. 2. Explain how the bankruptcy risk changed for Data Systems Corp. 3. Explain how the bankruptcy risk changed for Analytics, Inc. 4. Based on your analysis in 1 and 2 above, would you have predicted Data Systems or Analytics to file Bankruptcy? Explain Step by Step Solution
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