$($Analyzing the quality of earnings and sustainability of capital expenditures$)$ Look up the statement of cash flows for both Home Depot and Lowes using Yahool 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 eamings ratio for the two firms. For which firm do you feel most comforlable 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 eamings ratio in $2011?$

$($Round to one decimal place.$)$

What is Home Depot's quality of eamings ratio in $2012?$

$($Round to one decimal place.$)$

What is Home Depot's quality of eamings ratio in $2013?$

$\%($Round to one decimal place.$)$

What is Lowes' quality of eamings 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.$)$

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.$)$

D$.$ The information is not sufficient to tell which firm's quality of earnings ratios is more stable.

c$.$ Compute the capital acquisitions ratios for the latest three years for both firms.

What is Home Depot's average capital acquisitions ratio over the three$-$year period?

$6($Round to one decimal place.$)$

What is Lowes' average capital acquisitions ratio over the three$-$year period?

$\%($Round to one decimal place.$)$

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? $($Select the best choice below.$)$

A$.$ Consequently, for the past three years, Lowes had on average more operating cash flows to finance its new expenditures for plant and equipment.

B$.$ Consequently, for the past three years, Home Depot had on average more operating cash flows to finance its new expenditures for plant and equipment.

C$.$ The information is not sufficient to tell which firm is more sufficiently on using the operating cash flows to finance its new expenditures for plant and equipment.

D$.$ Consequently, for the past three years, both Home Depot and Lowes had on average about the same amount of operating cash flows to finance its new expenditures for plant and equipment.