Assuming that an investor is concerned about his money invested in AMN Bank due to recent collapse of many banks. Therefore, he is considering withdrawing all his money from AAA Bank and investing in a new bank, AZM Bank. As an expert, provide suggestions to the investor so that he can make an informed decision. The following are the financial information of AMN Bank and AZM Bank.

Z-score = 1.2X1 + 1.4 X2 + 3.3 X3 + 0.6 X4 + 1.0 X5

	AMN BANK	AZM BANK
Sales	4,500	2,000
Earning Before Interest and Tax	200	-120
Current Assets	1,800	800
Total Assets	2,700	1,200
Current Liabilities	1,500	750
Total Liabilities	1,700	1,000
Retained Earnings	800	-25
Market Value of Equity	1600	80

(a)Explain Almans Z-score and the meaning of a score of less than 1.8. (4 marks)

(b)Calculate the Z-score ratio of AMN Bank and AZM Bank. (10 marks)

(c)Explain on the result obtained from Altmans Z-score in predicting banks failure. (6 marks)