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.