answer all of B (yr 2000 to 2004)

LOS 5.16 Computing and Interpreting Risk and Bankruptcy Prediction Ratios for a Firm That Declared Bankruptcy. Delta Air Lines, Inc. is one of the largest airlines in the United States. It has operated on the verge of bankruptcy for sev eral years. Exhibit 5.17 presents selected financial data for Delta Air Lines for each of the five years ending December 31, 2000, to December 31, 2004. Delta Air Lines filed for bankruptcy on September 14, 2005. We recommend that you create an Excel spreadsheet to compute the vat ues of the ratios and the Altman's Z-score in Requirements and b, respectively REQUIRED a. Compute the value of each the following risk ratios (1) Current ratio at the end of 2000-2004 21 Operating cash flow to current liabilities ratio for 2001-2004 an Liabilities to assets ratio at the end of 2000-2000 141 Long-term debt to long-term capital ratio at the end of 2000-2004 15) Operating cash flow to total abilities ratio for 2001-2004 16) Interest coverage ratio for 2000-2004 b. Compute the value of Altman's score for Delta Air Lines for each year from 2000 to 2004 bring the analyses inquirements and discuss the most important factors that sig maled the likelihood of bankruptcy of Delta Air Lines in 2005 Question des problems and Com 2000 Exhibit 5.17 Financial Data for Delta Air Lines, Inc. famounts in millions, except per share amounts) (Problem 5.16) For Year Ended December 31 2004 2003 2002 2001 Sales $15,002 514,087 $13,866 $13,879 Net Income (los) before interest and taxes $0,161) 5(432) 501,337) $11,365) Interest expense 5824 $757 5665 $499 Net income foss $(5.1961 $1773) $11.2721 $11.216 Current assets $3,606 $4.550 $3,902 $3,567 Total assets $21,801 525,939 $24.720 $23,605 Current liabilities $5.941 $6,157 $6,455 56,403 Long term debt $12,507 $11,040 $9,576 57,781 Total liabilities 527320 $26.323 $23,563 $19,581 Retained earnings (deficit $14.373) 5844 $1,639 $2,930 Shareholders' equity $(S.519) $1384 $1,157 $4,024 Cash flow provided by operations $11,123) $142 5225 $236 Common shares outstanding 139.8 1235 1234 1232 Market price per share $12.10 $29.26 $15,657 51.829 $380 $828 53.205 $21,931 $5,245 55.797 $16,354 $4,176 $5.577 $2.898 123.0 $50.18 $7.48 $1181