Compute and Interpret Altman's Z-scores

Following is selected financial information for eBay Inc., for its fiscal years 2016 and 2015.

(In millions, except per share data)	2016	2015
Current assets	$ 8,875	$ 7,904
Current liabilities	3,847	2,263
Total assets	23,847	17,755
Total liabilities	13,308	11,179
Shares outstanding	530	741
Retained earnings	14,959	7,713
Stock price per share	29.69	27.48
Sales	8,979	8,592
Earnings before interest and taxes	2,325	2,197

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.) 2016 z-score = Answer 2015 z-score = Answer Which of the following best describes the company's likelihood to go bankrupt given the z-score in 2015 compared to 2016.

The z-score in 2016 decreased slightly. Z-scores for both years are in the gray area indicating some risk of bankruptcy.

The z-score in 2016 increased slightly, which suggests the company's risk of bankruptcy has increased.

The z-score in 2016 increased slightly. Z-scores for both years are in the gray area indicating some risk for bankruptcy

The z-score in 2016 decreased slightly, which suggests the company's risk of bankruptcy has decreased.