Bankruptcy Risk and Z-Score Analysis Following are selected ratios for JetBlue Airways for two recent fiscal years.

Ratio	2012	2011
Current ratio	0.684	1.153
Working capital to total assets	(0.072)	0.031
Retained earnings to total assets	0.061	0.043
EBIT to total assets	0.053	0.046
Market value of equity to total liabilities	0.278	0.251
Sales to total assets	0.705	0.637

Compute and interpret Altman Z-scores for the company for both years. (Do not round until your final answer; then round your answers to two decimal places.) 2012 z-score = Answer 2011 z-score = Answer Which of the following statements best describes the company's Altman z-scores?

Both Altman z-scores are above 3.00 which indicate the company has a very high probability of bankruptcy.

Both Altman z-scores are below 1.80 which indicate the company has a very low probability of bankruptcy.

Both Altman z-scores are above 3.00 which indicate the company has a very low probability of bankruptcy.

Both Altman z-scores are below 1.80 which indicate the company has a very high probability of bankruptcy.