The following information is available for Casper Sleep Inc. for the three years ending December 31, 2020 (dollars in thousands).

Required:
a. Using the information provided, use Altman’s bankruptcy model (described in the chapter) and estimate the likelihood of bankruptcy in each of the last three years. Casper became a public company in 2020, so you will need to use the private company model described in the chapter. Is the likelihood of bankruptcy using this model increasing, decreasing, or staying relatively constant?
b. Using all the information provided above, are there good or bad signs that might or might not indicate bankruptcy?

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Current Assets Total Assets Current Liabilities Long-term debt Total Liabilities Retained Earnings Sales/Revenues Earnings (loss) before interest and taxes Cash from operation Market value of equity Book value of equity 12/31/2020 12/31/2019 166,304 161,919 234,201 230,318 119,281 147,959 65,546 49,173 208,734 217,451 (414,815) (325,260) 497,000 439,258 (89,590) (92,552) (47,568) (44,328) 248,297 25,467 (307,260) 12/30/2018 91,903 116,538 26,855 -0- 101,625 (232,889) 357,891 (93,169) (12,035) (223,889)