Reference no: EM133560821

Question: Analyzing the quality of firm? earnings) 750000 ?Kabutell, Inc. had net income of ?70000, cash flow from financing activities of 60000?, depreciation expenses of ?, and cash flow from operating activities of 500000. 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: 478, 457 2012: 401, 449 2013: 469, 454 Cash Flow from Operations ?$ ?$ ?$ Capital Expenditures? (CAPEX) ?$ ?$ ?$ ChatGPT a. To calculate the quality of earnings ratio, you can use the following formula: Quality of Earnings Ratio = (Net Income Depreciation) / Cash Flow from Operating Activities Given values: Net Income = $70,000 Depreciation Expenses = $? Cash Flow from Operating Activities = $500,000 We need to find the missing depreciation expense to calculate the ratio. The formula becomes: Quality of Earnings Ratio = ($70,000 Depreciation) / $500,000 Without the depreciation expense value, we cannot calculate the quality of earnings ratio precisely. The depreciation expense is crucial because it represents non-cash expenses that affect net income but don't impact cash flow.