Financial ratios has the highest weight

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Reference no: EM13976741

1. Which of the following financial ratios has the highest weight in Altman's Z-score estimation?

Working capital/total assets

EBIT/total assets

Sales/total assets

Retained earnings/total assets

2. If a firm decided to speed up its collection from its customers by reducing the receivables period and kept the inventory period and payable period the same, then:

cash conversion cycle will increase.

the firm's investment in working capital will be minimized.

unable to determine from the information provided.

cash conversion cycle will decrease.

Reference no: EM13976741

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