↑ (Analyzing the quality of firm earnings) Kabutel, Inc had net income of $750,000, cash flow from financing activities of $50,000, depreciation expenses of $38.888 activities of $575.000 & Calculate the quality of eamings ratio. What does this ratio tell you? & Kabutel, inc reported the following in its annual reports for 2011-2013 2012 $403 $447 What is Kabutel's quality of eamings rato? 2013 5470 5456 2011 Cash Flow from Operations 1478 Capital Expenditures (CAPEX) $450 (Click on the con in order to copy ts contents into a spreadsheet) Calculate the average capital acquisitions ratio over the three-year period. How would you interpret these results?

FINANCIAL ACCOUNTING
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Chapter1: Financial Statements And Business Decisions
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(Analyzing the quality of firm earnings) Kabutell, Inc. had net income of $750,000, cash flow from financing activities of $50,000, depreciation expenses of $50,000, and cash flow from operating
activities of $575.000
a Calculate the quality of eamings ratio. What does this rato tell you?
b. Kabutell, inc reported the following in its annual reports for 2011-2013
(5 million)
Cash Flow from Operations
Capital Expenditures (CAPEX)
2011
$478
$450
(Click on the con in order to copy its contents into a spreadsheet)
Calculate the average capital acquisitions ratio over the three-year period. How would you interpret these results?
2012
$403
$447
What is Kabutelf's quality of earnings ratio?
(Round to one decimal place.)
2013
$470
5456
CETTE
Transcribed Image Text:K (Analyzing the quality of firm earnings) Kabutell, Inc. had net income of $750,000, cash flow from financing activities of $50,000, depreciation expenses of $50,000, and cash flow from operating activities of $575.000 a Calculate the quality of eamings ratio. What does this rato tell you? b. Kabutell, inc reported the following in its annual reports for 2011-2013 (5 million) Cash Flow from Operations Capital Expenditures (CAPEX) 2011 $478 $450 (Click on the con in order to copy its contents into a spreadsheet) Calculate the average capital acquisitions ratio over the three-year period. How would you interpret these results? 2012 $403 $447 What is Kabutelf's quality of earnings ratio? (Round to one decimal place.) 2013 $470 5456 CETTE
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