Question 3 Corporate ailure Prediction Models Georgia Limited is a manufacturer of roofing tiles. Extract of Financial Statements are as follows: Income Statement for the year ended 31 December 2019 GHe Turnover 32,000 Cost of sales (15,5002 18,500 Goss pront 300) Selling and administration ex pens es 45002 ntcrest charges Profit be fore tax 5,900 ax (2.700) 3,200 Net profit Statement of Financial Position as at 31 December 2019 iH Non-cur rent assets 15,000 Building Plant & equipme nt I1,640 Inves tment 5,160 Total non-current assets 31 800 Current assets StOcks 7,800 Debtors 3,200 Bank 4,600 Total current assets 15,600 Total assets 47,A00 Equity capital 10,000 Ordinary shares Share premium 2,500 1800 Capital surplus 10,200 Income surplus Total equity capital 30,500 Current lia bilities 3,000 payable Creditors 4,400 7,400 Total current liabilities Non-current liabilities 9,500 Long term loan Total non-current liabilities Equity plus liabilities 3 of 4 Page Additional information Georgia Limited has iss ued share capital of 40,000 shares at a nom inal value of GH0.25 per share. These shares are now selling on the stock exchange for GH0. 10 per share. Required (a) Using Altman's corporate failure prediction model, determine whether Georgia Limited is Marks] in danger of collapse in the near future. (b) Discuss the validity of Altman's Z-Score model and outline the jus tifications for use of the model. Marks (c) Outline the elements of Argenti's corporate failure prediction model 5 Marks] (d) Discuss the relevance Argenti's corporate failure prediction model in managing corporate entities