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?