(Analyzing the quality of earnings and sustainability of capital expenditures) Look up the statement of cash flows for both Home Depot and Lowes using Yahoo! Finance. a. Compute the quality of earnings ratio for both firms and all three years of data provided in the popup window: b. Compare the quality of earnings ratio for the two firms. For which firm do you feel most comfortable about the reported earnings quality? Explain. c. Compute the capital acquisitions ratios for the latest three years for both firms. d. Compare Home Depot's and Lowes' abilities of using operating cash flow to finance their capital expenditures. Which firm has relied more on the capital markets? a. Compute the quality of earnings ratio for both firms and all three years of data provided. What is Home Depot's quality of earnings ratio in 2011? % (Round to one decimal place.) What is Home Depot's quality of earnings ratio in 2012? % (Round to one decimal place.) What is Home Depot's quality of earnings ratio in 2013? % (Round to one decimal place.) What is Lowes' quality of earnings ratio in 2011? % (Round to one decimal place.) What is Lowes' quality of earnings ratio in 2012? % (Round to one decimal place.) What is Lowes' quality of earnings ratio in 2013? % % (Round to one decimal place.) Data table 2011 Home Depot 2012 Net Income Cash Flow from Operations Capital Expenditures (CAPEX) $3,338,000 $3,883,000 Lowes 2013 2011 2012 2013 $4,535,000 $2,010,000 $1,839,000 $1,959,000 $4,585,000 $8,651,000 $8,975,000 $3,852,000 $4,349,000 $3,762,000 $1,096,000 $1,221,000 $1,312,000 $1,329,000 $1,829,000 $1,211,000 (Click on the icon in order to copy its contents into a spreadsheet.) Done b. Compare the quality of earnings ratio for the two firms. For which firm do you feel most comfortable about the reported earnings quality? (Select the best choice below.) O A. Home Depot's quality of earnings ratio is fairly stable over time, this suggests that the firm's earnings and cash flows are in sync and that reported earnings provide a high-quality indicator of the firm's future performance potential. OB. Lowes' quality of earnings ratio is fairly stable over time, this suggests that the firm's earnings and cash flows are in sync and that reported earnings provide a high-quality indicator of the firm's future performance potential. OC. Both Home Depot's and Lowes' quality of earnings ratios are fairly stable over time, this suggests that the firm's earnings and cash flows are in sync and that reported earnings provide a high-quality indicator of the firm's future performance potential. OD. The information is not sufficient to tell which firm's quality of earnings ratios is more stable.