Question
Analyzing the quality of firm earnings) Kabutell, Inc. had net income of $ 800, 000 cash flow from financing activities of $ 60,000, depreciation expenses
Analyzing the quality of firm earnings) Kabutell, Inc. had net income of $ 800, 000 cash flow from financing activities of $ 60,000, depreciation expenses of $ 60,000 and cash flow from operating activities of $ 450,000 . a.Calculate the quality of earnings ratio. What does this ratio tell you? b.Kabutell, Inc. reported the following in its annual reports for 2013.
($ million) 2011 2012 2013
Cash Flow from Operations $476 $404 $468
Capital Expenditures (CAPEX) $459 $446 $455
Calculate the average capital acquisitions ratio over the three-year period. How would you interpret these results?
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started