eBook Question 3 Not complete Marked out of 3.00 Flag question 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 10.092) (0.101) Retained earnings to total assets 10.176) (0.185) EBIT to total assets 0.019 0.060 Market value of equity to total liabilities 0.140 0.260 Sales to total assets 0.72 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 2-scores are above 3.00 which indicate the company has a very high 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 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. Check Previous Save Answers 8