Kabutell, Inc had net income of $850,000,cash flow from financing activities of $70,000 depreciation expenses of $50,000 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

what is Kabutell's wuality of earnings ratio?

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\begin{tabular}{llll} \hline (\$ million) & 2011 & 2012 & 2013 \\ \hline Cash Flow from Operations & $478 & $404 & $472 \\ Capital Expenditures (CAPEX) & $458 & $449 & $455 \\ \hline \end{tabular}