i) Which firm has the highest risk of bankruptcy?

ii) If you were a bank manager, to which firm would you lend money? Explain.

iii) Provide 3 recommendations about how DELTA can improve its credit worthiness?

iv) Would you use Z-score to assess the credit worthiness of a bank? Explain.

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ASSETS Current Assets Working Capital Cash Total Assets LIABILITIES Current Liabilities Short-term Debt Total Liabilities EQUITY Retained Earnings Total Equity INCOME STATEMENT Sales EBIT Net Income CASH FLOW STATEMENT Operating Cash Flows OTHER Shares Outstanding Share Price IBM 49004 6569 12741 109524 42435 11236 96059 48507 13465 103630 16750 12334 18812 1339 84.16 DELTA 8904 -2118 4255 45014 11022 1160 44140 -12688 874 22697 113 -8922 -1707 695 11.46 ASSETS Current Assets Working Capital Cash Total Assets LIABILITIES Current Liabilities Short-term Debt Total Liabilities EQUITY Retained Earnings Total Equity INCOME STATEMENT Sales EBIT Net Income CASH FLOW STATEMENT Operating Cash Flows OTHER Shares Outstanding Share Price IBM 49004 6569 12741 109524 42435 11236 96059 48507 13465 103630 16750 12334 18812 1339 84.16 DELTA 8904 -2118 4255 45014 11022 1160 44140 -12688 874 22697 113 -8922 -1707 695 11.46

Answer rating: 100% (QA)

i Based on the provided information DELTA has a higher risk of bankruptcy compared to IBM This is be... View the full answer