(Analyzing the quality of firm earnings)Kabutell, Inc. had net income of $800,000, cash flow from financing activities of $70,000, depreciation expenses of $60,000, and cash flow from operating activities of $600,000.

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

($ million)	2011	2012	2013
Cash Flow from Operations	$478	$405	$468
Capital Expenditures (CAPEX)	$457	$446	$458

Calculate the average capital acquisitions ratio over the three-year period. How would you interpret these results?