Essentials Of Investments
11th Edition
ISBN: 9781260013924
Author: Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher: Mcgraw-hill Education,
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- (Analyzing the quality of firm earnings) Kabutell, Inc. had net income of $750,000, cash flow from financing activities of $50,000, depreciation expenses of $40,000, and cash flow from operating activities of $550,000. a. Calculate the quality of earnings ratio. What does this ratio tell you? b. Kabutell, Inc. reported the following in its annual reports for 2011-2013: ($ million) 2011 2012 2013 Cash Flow from Operations $479 $405 Capital Expenditures (CAPEX) $461 $447 $469 $457 (Click on the icon in order to copy its contents into a spreadsheet.) Calculate the average capital acquisitions ratio over the three-year period. How would you interpret these results? a. What is Kabutell's quality of earnings ratio? % (Round to one decimal place.)arrow_forward(Analyzing the quality of firm earnings) Kabutell, Inc. had net income of $650,000, cash flow from financing activities of $90,000, depreciation expenses of $60,000, and cash flow from operating activities of $550,000. a. Calculate the quality of earnings ratio. What does this ratio tell you? b. Kabutell, Inc. reported the following in its annual reports for 2011-2013: ($ million) 2011 Cash Flow from Operations $480 Capital Expenditures (CAPEX) $458 (Click on the icon in order to copy its contents into a spreadsheet.) Calculate the average capital acquisitions ratio over the three-year period. How would you interpret these results? 2012 $401 $446 2013 $468 $457arrow_forwardAnalyzing the quality of firm earnings) Kabutell, Inc. had net income of ,$ 800,000 cash flow from financing activities of $60,000 , depreciation expenses of $60,000 , and cash flow from operating activities of $500,000 . a. Calculate the quality of earnings ratio. What does this ratio tell you? b. Kabutell, Inc. reported the following in its annual reports for 2011–2013: ($ million) 2011 2012 2013 Cash Flow from Operations $477 $403 $472 Capital Expenditures (CAPEX) $459 $447 $455 a. What is Kabutell's quality of earnings ratio? 62.562.5% (Round to one decimal place.) Part 3 b. What is Kabutell's average capital acquisitions ratio over the three-year period? enter your response here% (Round to one decimal place.)arrow_forward
- 9arrow_forwardam. 106.arrow_forwardK (Analyzing the quality of firm earnings) 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 a Calculate the quality of eamings ratio. What does this rato tell you? b. Kabutell, inc reported the following in its annual reports for 2011-2013 (5 million) Cash Flow from Operations Capital Expenditures (CAPEX) 2011 $478 $450 (Click on the con in order to copy its contents into a spreadsheet) Calculate the average capital acquisitions ratio over the three-year period. How would you interpret these results? 2012 $403 $447 What is Kabutelf's quality of earnings ratio? (Round to one decimal place.) 2013 $470 5456 CETTEarrow_forward
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