1. Which of the following statements is probably an unreasonable statement relating to the Altman Z value?
A Z score of 2.00 or below indicates a very healthy company.
Total assets is an important consideration in the Z value computation.
The sales generating ability of the firm’s assets is one of the important considerations in the Z value.
Cumulative profitability over time is considered in the Z value computation.
2. The determination of capital expenditures can be made by calculating the change ________.
in accumulated depreciation
from LIFO to FIFO inventory valuation
in gross fixed assets, plus the ending balance of accumulated depreciation
in net fixed assets, adjusted by depreciation expense