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(Analyzing the quality of firm earnings) Kabute Inc. had net income of $700.000, cash flow from financing activities of $90.000, depreciation expenses of $60,000, and

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(Analyzing the quality of firm earnings) Kabute Inc. had net income of $700.000, cash flow from financing activities of $90.000, depreciation expenses of $60,000, and can tow from opening tivities of $650,000 a. Calculate the quality of earnings ratio. What does this ratio tell you? b. Kabutel, Inc. reported the following in its annual reports for 2011-2013 (5 million) 2011 2013 Cash Flow from Operations 5476 $404 $470 Capital Expenditures (GAPEX) 5461 $446 $455 (CHO on the icon order to copy contents into a det) Calculate the average capital cuisitions ratie over the three year period. How would you interpret these results? 2012 a. What is Kobulet's quality of camins ratio? (% (Round to one decimul place) What does this ratio tell you? (Select the best choice below) OA. Kabutel's reported not income was 92.9 percent of the firm's cash flow from operations. The firm depends mainly on non-operating source of cash to generale is not income OB. Kabutoll's cash flow from operations was 92.9 percent of the firm's reported not income. The firm depends mainly on non operating source of cash to generate ta net income Oc. Kabutelt's cash flow from operations was 92.9 percent of the firm's reported not income. The fim depends mainly on operating source of cash to generate its net income OD Kabutel's reported not income was 92.9 percent of the firm's cash flow from operations. The fim depends mainly on operating source of cash to generate its not income

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