(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 earnings ratio. What does this ratio tell you? b. Kabutell, Inc. reported the following in its annual reports for 2011-2013: (S million) Cash Flow from Operations Capital Expenditures (CAPEX) 2011 $478 $459 2012 $403 $447 2013 $470 $456

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