Question
In: Finance
(Analyzing the quality of firm earnings) Kabutell, Inc. had net income of $800,000, cash flow from...
(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?
Solutions
jeff jeffy answered 1 year agoRelated Solutions
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