The CFO and management of Marula Logistics approached your financial institution for a credit facility. The following are ratios for Marula Logistics for the 2016 financial year.

? Working capital to total asset ratio = 13% ? Retained earnings to total asset ratio = 27% ? Profit before interest and tax to total assets = 18% ? Market value of equity to book value of debt = 115% ? Sales to total assets = 126%

Based on the Altman's Z-score, calculate the risk of bankruptcy for Marula Logistics. Briefly comment on the credit decision you will make based on the calculated Z-score.