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(Analyzing the quality of firm earnings) Kabutel, Inc. had net income of $700,000, cash flow from financing activities of $60,000, depreciation expenses of $40,000, and

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(Analyzing the quality of firm earnings) Kabutel, Inc. had net income of $700,000, cash flow from financing activities of $60,000, depreciation expenses of $40,000, and cash flow from operating activities of $550,000 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: Calculate the average capital acquisitions ratio over the three-year period. How would you interpret these results? a. What is KabuleII's quality of earnings ratio? \% (Round to one decimal place.) What does this ratio tell you? (Select the best choice below.) A. Kabutelis cash fiow from operations was 78.6 percent of the firm's reported net income. The firm depends mainly on non-cperating source of cash to generate its net income. B. Kabutelf's cash flow from operations was 78.6 percent of the firm's reported net income. The firm depends mainly on operating source of cash to generate its net income. What does this ratio teil you? (Select the best choice below.) A. Kabuteli's cash flow from operations was 78.6 percent of the firm's reported net income: The firm depends mainly on non-operating source of cash to generate its net income. B. Kabutell's cash flow from operations was 78.6 percent of the firm's reported net income. The firm depends mainly on operating source of cash to generate its net income. C. Kabuteirs reported net income was 78.6 percent of the firm's cash flow from operations. The firm depends mainly on operating source of cash to getierate its net income: D. Kabutell's feported net income was 78.6 percent of the firm's cash flow from operations. The firm depends mainly on non-operating source of cash to generate its net income. b. What is Kabutelis average capital acquisitions ratio over the three-year period? \% (Round to one decimal place.) How would you interpret those results? (Select the best choice below) A. Consequently, for the past three years, Kabulell was on averape able to finance 99.0 percent of its new expenditures for plant and equipment out of the firms issuance of debt B. Consequently, for the past three yeurs, Kabutell was on average able to finance 99.0 percent of its new expenditures for plart and equipment out of the firm's issuance of common stock A. Consequently, for the past three years, Kabutell was on average able to finance 99.0 percent of its new expenditures for phant and equipment out of the firm's issuance of debt B. Consequenty. for the past three years, Kabutell was on average able to finance 99.0 percent of its new exsenditures for plant and equipenent out of the firm's issuance of common stock C. Consequently, tor the past three yeas. Kabuted, was on average able to finance 99.0 percent of its new expenditures for plant and equipenont out of the firmis curtent-year operations D. Consequently, for the past three yoars, Kabutell was on werage able to finance 99.0 percent of its new expenditures for plant and equapment out of the firm's sales of fixed issets

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