Kabutell, Inc. had net income of $750,000, cash flow from financing activities of $50,000, depreciation expenses of $50,000, and cash flow from operating activities of $575,000. Calculate the quality of earnings ratio. What does this ratio tell you?
a. Kabutell, Inc. reported the following in its annual reports for 2011€“2013:

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

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($ millions) Cash Flow from Operations Capital Expenditures (CAPEX) 2011 2012 2013 $478$403 $470 $459$447 $456