Calculate the quality of earnings ratio

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Reference no: EM13870622

Kabutell Inc had a 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 that tell you? B) Kabutell Inc reported the following in its annual reports for 2011-2013: Cash flow from operations ( $millions) 2011: $478 2012: $403 2013: $470 Capital Expenditures: 2011: $459 2012: $447 2013: $456 Calculate the average capital acquisitions ratio over the 3-year period. How would you interpret these results? A) What is Kabutells quality of earnings ratio?

Reference no: EM13870622

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