"We've got a problem with our preschool building blocks," he says. "As you know, we treated those blocks with an antibacterial agent and it was supposed to stop bacteria. But we've been running more tests, and it looks like that's not entirely true. It doesn't stop bacteria; it just slows down the growth." You shrug. "Okay, so what's the problem?" Jackson goes on. "The problem is the ad campaign that the geniuses in marketing came up with. Their ads claim that it 'stops bacteria in its tracks' and that's just not true. It's even on the packaging." Tonya speaks up. "Look, that's the mainstay of our promotional campaign, and sales of those blocks have gone through the roof since we started running those ads. That campaign has cost the company thousands of dollars, and if you change the packaging, that'll cost a fortune. I think we're nitpicking here." Jackson responds hotly, "I don't consider false advertising to be nitpicking." As CEO, what should you do?

This problem has been solved! see the answercompute and interpret altman's z-scoresfollowing is selected financial information for ebay, for its fiscal years 2005 and 2006.(in millions, except per share data) 2006 2005current assets $ 4,970.59 $ 3,183.24current liabilities 2,518.39 1,484.93total assets 13,494.01 11,788.99total liabilities 2,589.38 1,741.00shares outstanding 1,368.51 1,404.18retained earnings 4,538.35 2,819.64stock price per share 30.07 43.22sales 5,969.74 4,552.40earnings before interest and taxes 1,439.77 1,445.18compute 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.)2006 z-score = answer2005 z-score = answerwhich of the following best describes the company's likelihood to go bankrupt given the z-score in 2006 compared to 2007.the z-score in 2006 is half of the 2005 score. both z-scores are well above the score that represents a healthy company. the z-score in 2006 is double the 2005 score. the z-score has increased sharply, which suggests the company has greatly increased the risk of bankruptcy. the z-score in 2006 is half of the 2005 score. the z-score has decreased sharply, which suggests the company is in financial distress. the z-score in 2006 is double the 2005 score. the z-score has increased sharply, which suggests the company has greatly lowered the risk of bankruptcy.