Bankruptcy Risk and Z-Score Analysis Following are selected ratios for American Airways for two recent fiscal years. Ratio 2005 2006 Current ratio 0.725 0.740 Working capital to total assets (0.098) (0.089) Retained earnings to total assets (0.178) (0.183) EBIT to total assets 0.017 0.060 Market value of equity to total liabilities 0.158 0.254 Sales to total assets 0.784 0.866 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.) 2005 z-score = 2006 Z-score = 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 2-scores are below 1.80 which indicate the company has a very high probability of bankruptcy. Both Altman 2-scores are above 3.00 which indicate the company has a very low probability of bankruptcy