Determination of capital expenditures

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Reference no: EM131569984

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

Reference no: EM131569984

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