Question 5, P3-17 (similar to) Homework: MT217M2 Lab Practice HW Score: 16.67%, 3 of 18 points O Points: 0 of 1 Part 8 of 10 (Analyzing the quality of earnings and sustainability of capital expenditures) Look up the statement of cash flows for both Home Depot and Lowes using Yahoo! Finance. a. Compute the quality of earnings ratio for both firms and all three years of data provided in the popup window: b. Compare the quality of earnings ratio for the two firms. For which firm do you feel most comfortable about the reported earnings quality? Explain. c. Compute the capital acquisitions ratios for the latest three years for both firms. d. Compare Home Depot's and Lowes' abilities of using operating cash flow finance their capital expenditures. Which firm has relied more on the capital markets? C What is Home Depot's quality of earnings ratio in 2012? 171.3% (Round to one decimal place.) What is Home Depot's quality of earnings ratio in 2013? 153.8% (Round to one decimal place.) Data table Lowes 2012 2011 2013 Net Income Home Depot 2012 2011 2013 $3,338,000 $3,883,000 $4,535,000 $2,010,000 $1,839,000 $1,959,000 Cash Flow from Operations $4,585,000 $6,651,000 $6,975,000 $3,852,000 $4.349,000 $3.762,000 Capital Expenditures (CAPEX) $1,096,000 $1,221,000 $1,312,000 $1,329,000 $1,829,000 $1,211,000 (Click on the icon in order to copy its contents into a spreadsheet.) the best choice below.) Done h sync and that reported earnings provide a high-quality indicator of the firm's future performance potential. nings provide a high-quality indicator of the firm's future performance potential. rted earnings provide a high-quality indicator of the firm's future performance potential. c. Compute the capital acquisitions ratios for the latest three years for both firms. What is Home Depot's average capital acquisitions ratio over the three-year period? % (Round to one decimal place.) Help me solve this View an example Get more help