Analyzing the quality of firm earnings) Kabutell, Inc. had net income of ,$ 800,000 cash flow from financing activities of $60,000 , depreciation expenses of $60,000 , and cash flow from operating activities of $500,000 . a. Calculate the quality of earnings ratio. What does this ratio tell you? b. Kabutell, Inc. reported the following in its annual reports for 2011–2013: ($ million) 2011 2012 2013 Cash Flow from Operations $477 $403 $472 Capital Expenditures (CAPEX) $459 $447 $455 a. What is Kabutell's quality of earnings ratio? 62.562.5% (Round to one decimal place.) Part 3 b. What is Kabutell's average capital acquisitions ratio over the three-year period? enter your response here% (Round to one decimal place.)
Analyzing the quality of firm earnings) Kabutell, Inc. had net income of ,$ 800,000 cash flow from financing activities of $60,000 ,
a. Calculate the quality of earnings ratio. What does this ratio tell you?
b. Kabutell, Inc. reported the following in its annual reports for
2011–2013:
|
($ million) |
2011 |
2012 |
2013 |
|---|---|---|---|
|
Cash Flow from Operations |
$477 |
$403 |
$472 |
|
Capital Expenditures (CAPEX) |
$459 |
$447 |
$455 |
a. What is Kabutell's quality of earnings ratio?
62.562.5%
(Round to one decimal place.)
Part 3
b. What is Kabutell's average capital acquisitions ratio over the three-year period?
enter your response here%
(Round to one decimal place.)
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