please answer A & B

LOS 5.16 Computing and interpreting Risk and Bankruptcy Prediction Ratios for a Firm That Declared Bankruptcy. Delta Air Lines, Inc., is one of the largest airlines in the United States. It has operated on the verge of bankruptcy for ser eral years. Exhibit 5.17 presents selected financial data for Delta Air Lines for each of the five years ending December 31, 2000, to December 31, 2004. Delta Air Lines filed for bankruptcy on September 14, 2005. We recommend that you create an Excel spreadsheet to compute the val ues of the ratios and the Altman's 2-score in Requirements and b, respectively REQUIRED & Compute the value of each the following tisk ratios (1) Current ratio at the end of 2000-2004 (2) Operating cash flow to current liabilities ratio for 2001-2004 (3) Liabilities to assets ratio at the end of 2000-2004 (4) Long-term debt to long-term capital ratio at the end of 2000-2004) 15) Operating cash flow to total abilities ratio for 2001-2004 (6) Interest coverage ratio for 2000-2004 b. Compute the value of Altman's Zscore for Delta Air Lines for each year from 2000 to 2004. Using the analyses in Requirements and by discuss the most important factors that sig naled the likelihood of bankruptcy of Delta Air Lines in 2005. Questions. Exercises. Problems and Cases 12) 2002 2000 Exhibit 5.17 Financial Data for Delta Air Lines, Inc. (amounts in millions, except per share amounts) (Problem 5.16) For Year Ended December 31. 2004 2003 2001 Sales $15,002 $14,087 $13,866 $13.879 Net Income (loss) before interest and taxes $13.168 $(432) 5(1,337) $(1,365) Interest expense 5824 $757 5665 $499 Net income (loss) $15.1980 51773) 5(1,2721 $11.216) Current assets $3,606 $4,550 $3,902 $3.567 Total assets $21801 $25,939 $24.720 $23,605 Current liabilities $5.941 $6,157 56,455 $6,403 Long-term debt $12.507 $11,040 59,576 57,781 Total liabilities $27.320 $26,323 $23,563 $19.581 Retained earings (deficit) $14.373) $844 $1,639 52.930 Shareholders' equity SI5,519) $1384 $1,157 $4.024 Cash flow provided by operations $(1,123) $142 $225 $236 Common shares outstanding 139.8 1235 1234 123.2 Market price per share $7.48 $11.81 $12.10 $29.26 Source: Delta Airline in Form 10-K for the Fiscal Year Ended in 2000-June 2004 515,657 $1,829 5380 $828 $3,205 521,931 55.245 55,797 $16.354 $4,176 $5,577 $2.898 123.0 $50.18