Hi, I'm looking for helpwith the following questions posted below. Any help you can provided would be greatly appreciated as I have been having a difficult time understanding cash flows which makes these questions a little difficult to answer. If you could please explain how you figured out how to solve the questions below so I can fully understand what you did that would be great! Thank you :)

5.15 What is the effect of the change in trade receivables on cash flows from operations for the most recent year (that is, did the change increase or decrease operating cash flows, and by how much)? Explain you answer and identify the direction and amount of the change.

5.16 What is the effect of the change in inventories on cash flows from operations for the most recent year (that is, did the change increase or decrease operating cash flows, and by how much)? Explain your answer and identify the direction and amount of the change.

ANNUAL REPORT 2015 We are customer driven, value oriented and committed to excellence. By promoting innovation, growth, development and teamwork, REITMANS IS CANADA'S LEADING SPECIALTY RETAILER we strive to serve our customers the best quality/value proposition in the marketplace. Fiscal 2015 was a challenging year. Sales for scal 2015 were $939,376,000 as compared with $960,397,000 for scal 2014, a decrease of 2.2%, impacted by a net reduction of 55 stores as the Company closes underperforming locations. Same store sales1 increased 1.2% with mall and power centre stores decreasing 0.2% and e-commerce sales increasing 63.5%. Mall and power centre stores were impacted by e-commerce alternatives, a highly competitive environment and consumers with near record high debt levels. Sales through the various banners' e-commerce channels continued to show strong growth, although representing a small proportion of total Company sales. The Company's gross margin for scal 2015 was 60.4% compared with 61.9% for scal 2014. The Company's gross margin includes gains on foreign exchange contracts previously reported in nance income (gain of $10,921,000 for scal 2015 and $12,455,000 for scal 2014). Net earnings for scal 2015 were $13,415,000 ($0.21 diluted earnings per share) as compared with net earnings of $10,788,000 ($0.17 diluted earnings per share) for scal 2014. The increase in net earnings was primarily attributable to the closure of non-performing stores and previously reported initiatives to reduce costs across the organization. For scal 2015, adjusted EBITDA1 was $64,805,000 as compared with $70,453,000 in scal 2014, a decrease of $5,648,000 or 8.0% largely attributable to lower sales and margins. On November 25, 2014 the Company announced its plan to close all Smart Set stores. In scal 2015, 35 Smart Set stores were closed. The Company will convert 74 stores to other banners by October 31, 2015 while 20 stores will be closed upon expiry of their leases. During the year, the Company opened 12 new stores and closed 67. Accordingly, at January 31, 2015, there were 823 stores in operation, consisting of 341 Reitmans, 139 Penningtons, 105 Addition Elle, 76 RW & CO., 68 Thyme Maternity and 94 Smart Set, as compared with a total of 878 stores as at February 1, 2014. In addition, there were 21 Thyme Maternity shop-in-shop boutiques in select Babies\"R\"Us locations in Canada. We expect to open 6 new stores, close 51 stores, remodel 45 stores and convert 74 Smart Set stores at a capital cost of approximately $20,000,000. TO OUR SHAREHOLDERS The Company continues to execute its strategy of delivering fashionable clothing at excellent prices to Canadian consumers. We are proud of our achievements over the past 89 years and most condent of our future. We believe that we have the very best specialty retailing assets in Canada. Our operations are led and staffed by highly motivated, extremely competent professionals. We extend sincere thanks and appreciation to all our associates, suppliers, customers and shareholders. These are the people who have made possible our many years of success and on whom we rely for the growth of the Company. On behalf of the Board of Directors, (signed) Jeremy H. Reitman Chairman and Chief Executive Ofcer Montreal, April 1, 2015 1 Please refer to the note on non-GAAP nancial measures included in the Management's Discussion & Analysis. FOR THE YEARS ENDED: (IN THOUSANDS EXCEPT PER SHARE AMOUNTS) (UNAUDITED) SALES 1st Quarter 2nd Quarter 3rd Quarter 4th Quarter TOTAL RESULTS FROM OPERATING ACTIVITIES 2 1st Quarter 2nd Quarter 3rd Quarter 4th Quarter TOTAL 2 5-YEAR HIGHLIGHTS 2014 2015 NET EARNINGS (LOSS) 1st Quarter 2nd Quarter 3rd Quarter 4th Quarter TOTAL $ $ 206,478 258,326 238,295 236,277 $ 939,376 $ $ $ $ $ $ BASIC EARNINGS (LOSS) PER SHARE 1st Quarter 2nd Quarter 3rd Quarter 4th Quarter TOTAL $ NET EARNINGS BASIC EARNINGS PER SHARE $ $ SHAREHOLDERS' EQUITY PER SHARE (16,629) 10,904 14,078 4,143 12,496 $ $ (13,415) 9,557 12,866 4,407 13,415 $ 235,745 292,026 262,515 268,714 $ 1,059,000 (5,117) 13,463 6,133 (11,373) 3,106 $ $ $ $ 13,415 0.21 $ $ $ 421,123 $ 6.52 $ $ NUMBER OF STORES $ 219,296 286,075 254,072 259,954 $ 1,019,397 (0.21) 0.15 0.20 0.07 0.21 $ $ $ $ (119) 27,649 (29) (1,145) 26,356 $ 0.00 0.42 0.00 (0.02) 0.40 10,788 0.17 $ $ 423,431 6.56 $ $ 878 823 (736) 35,211 (1,135) (2,538) 30,802 $ 2011 217,094 279,513 236,247 267,659 $ 1,000,513 (2,586) 10,182 5,763 (2,571) 10,788 $ 2012 216,861 253,445 249,414 240,677 960,397 (0.04) 0.16 0.09 (0.04) 0.17 $ 2013 1 $ $ $ $ 5,018 40,968 10,609 4,493 61,088 624 31,680 10,561 4,674 47,539 $ $ $ $ 15,770 38,706 20,692 13,817 88,985 $ 0.01 0.48 0.16 0.07 0.72 $ 0.23 0.58 0.31 0.21 1.33 26,356 0.40 $ $ 47,539 0.72 $ $ 88,985 1.33 454,893 7.04 $ $ 492,852 7.51 $ $ 512,800 7.73 911 $ 22,825 53,612 27,819 19,886 124,142 942 968 DIVIDENDS PAID $ 12,917 $ 41,981 $ 52,068 $ 52,654 $ 51,895 SHARE PRICE AT YEAR-END CLASS A NON-VOTING COMMON $ $ 8.10 7.11 $ $ 5.56 5.61 $ $ 12.39 11.85 $ $ 14.64 14.98 $ $ 17.81 18.18 1 Adjusted to reect the impact from the implementation of the amendments to IAS 19, Employee Benets. 2 Adjusted to reect the reclassication of realized and unrealized gains and losses on foreign exchange contracts not eligible for hedge accounting to conform with presentation in the current year. Gains and losses on these foreign exchange contracts were previously reported in nance income and nance costs as described in the Management's Discussion and Analysis. 120 1080 1060 100 1040 1020 IN MILLIONS OF DOLLARS IN MILLIONS OF DOLLARS 980 960 940 920 900 880 60 40 20 2011 2012 2013 2014 2015 0 2011 2012 2013 2014 2015 860 RESULTS FROM OPERATING ACTIVITIES 1, 2 80 SALES 1000 100 600 90 500 80 70 NET EARNINGS 1 IN MILLIONS OF DOLLARS 50 40 30 20 10 3 300 200 100 0 2011 2012 2013 2014 2015 0 SHAREHOLDERS' EQUITY 1 400 2011 2012 2013 2014 2015 IN MILLIONS OF DOLLARS 60 60 20.0 18.0 50 16.0 RETURN ON EQUITY 1 12.0 IN MILLIONS OF DOLLARS 10.0 8.0 6.0 4.0 2.0 0 2011 2012 2013 2014 2015 PERCENTAGE 40 DIVIDENDS 30 20 1 The year ended 2013 has been adjusted to reect the impact from the implementation of the amendments to IAS 19, Employee Benets. 10 2 Adjusted to reect the reclassication of realized and unrealized gains and losses on foreign exchange contracts not eligible for hedge accounting to conform with presentation in the current year. Gains and losses on these foreign exchange contracts were previously reported in nance income and nance costs as described in the Management's Discussion and Analysis. 0 2011 2012 2013 2014 2015 14.0 REITMANS PENNINGTONS ADDITION ELLE RW & CO. THYME SMART SET TOTAL STORES 4 STORES ACROSS CANADA 14 3 2 1 - - 3 1 - - - 2 19 6 2 1 1 1 13 4 3 3 1 3 82 25 30 16 21 36 110 51 39 29 25 33 12 5 3 3 2 3 11 6 3 2 2 2 40 20 17 11 10 8 35 18 6 10 6 6 1 - - - - - 1 - - - - - 20 6 30 27 210 287 28 26 106 81 1 1 341 139 105 76 68 94 823 NEWFOUNDLAND PRINCE EDWARD ISLAND NOVA SCOTIA NEW BRUNSWICK QUBEC ONTARIO MANITOBA SASKATCHEWAN ALBERTA BRITISH COLUMBIA NORTHWEST TERRITORIES YUKON REITMANS offers a unique combination of superior t, fashion, quality and value. With 341 STORES across Canada averaging 4,600 sq. ft., Reitmans is the preferred destination for women looking to update their wardrobe with the latest styles and colours for an affordable price. While Reitmans enjoys a strong reputation for service and benets from a broad and loyal customer base, it will continue to strive to create an engaging customer experience by being there for her whenever she chooses to shop. Reitmans' fashions can also be purchased online at reitmans.com. Canadian leader of plus-size apparel, PENNINGTONS offers unparalleled value to our customers by providing t expertise, quality and a unique inspiring shopping experience. Penningtons is the \"Art of Affordable Fashion!\" The plus-size fashion destination for sizes 14-32, Penningtons operates 139 STORES across Canada averaging 6,000 sq. ft. and is available online at penningtons.com. ADDITION ELLE is Canada's leading fashion destination for plus-size women. Addition Elle's vision of \"Fashion Democracy\" delivers the latest trends to updated fashion essentials in an inspiring shopping environment, offering casual daywear, dresses, contemporary career, sexy intimates, accessories, footwear, high performance activewear and a large assortment of premium denim labels. Addition Elle operates 105 STORES averaging 6,000 sq. ft. in major malls and power centres nationwide and an e-commerce site at additionelle.com. RW & CO. is an aspirational lifestyle brand which caters to men and women with an urban mindset. Whether for work or for weekend, RW & CO. offers fashion that blends the latest trends with style, quality and a unique attention to detail. RW & CO. operates 76 STORES averaging 4,500 sq. ft. in premium locations in major shopping malls across Canada, as well as an e-commerce site at rw-co.com. THYME MATERNITY, Canada's leading fashion brand for modern moms-to-be, offers current styles for every aspect of life, from casual to work, including a complete line of nursing fashion and accessories. Thyme brings future moms valuable advice, fashion tips and product knowledge to help them on their incredible journey during and after pregnancy. Thyme operates 68 STORES averaging 2,300 sq. ft. in major malls and power centres nationwide, as well as 21 Thyme shop-in-shops in select Babies\"R\"Us locations in Canada. Thyme Maternity fashions can also be purchased online at thymematernity.com. With 94 STORES, averaging 3,400 sq. ft., SMART SET is a style destination offering wear-to-work separates, denim, essentials and accessories. Smart Set offers the latest styles in women's fashions to mix, match and innovate. Smart Set fashions can also be purchased online at smartset.ca. 5 The following Management's Discussion and Analysis of Financial Condition and Results of Operations (\"MD&A\") of Reitmans (Canada) Limited and its subsidiaries (\"Reitmans\" or the \"Company\") should be read in conjunction with the audited consolidated nancial statements of Reitmans as at and for the scal year ended January 31, 2015 (\"scal 2015\") and February 1, 2014 (\"scal 2014\") and the notes thereto which are available at www.sedar.com. This MD&A is dated April 1, 2015. All nancial information contained in this MD&A and Reitmans' audited consolidated nancial statements have been prepared in accordance with International Financial Reporting Standards (\"IFRS\"), also referred to as Generally Accepted Accounting Principles (\"GAAP\"), as issued by the International Accounting Standards Board (\"IASB\"). All monetary amounts in this report are in thousands of Canadian dollars, except per share amounts. The audited consolidated nancial statements and this MD&A were reviewed by Reitmans' Audit Committee and were approved by its Board of Directors on April 1, 2015. Additional information about Reitmans is available on the Company's website at www.reitmans.ca or on the SEDAR website at www.sedar.com. FORWARD-LOOKING STATEMENTS MANAGEMENT'S DISCUSSION AND ANALYSIS 6 OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS FOR THE FISCAL YEAR ENDED JANUARY 31, 2015 REITMANS (CANADA) LIMITED All of the statements contained herein, other than statements of fact that are independently veriable at the date hereof, are forward-looking statements. Such statements, based as they are on the current expectations of management, inherently involve numerous risks and uncertainties, known and unknown, many of which are beyond the Company's control. Such risks include but are not limited to: the impact of general economic conditions, general conditions in the retail industry, seasonality, weather and other risks included in public lings of the Company, including those described in the \"Operating Risk Management\" and \"Financial Risk Management\" sections of this MD&A. Consequently, actual future results may differ materially from the anticipated results expressed in forward-looking statements, which reect the Company's expectations only as of the date of this MD&A. Forward-looking statements are based upon the Company's current estimates, beliefs and assumptions, which are based on management's perception of historical trends, current conditions and currently expected future developments, as well as other factors it believes are appropriate in the circumstances. Specic forward-looking statements in this MD&A include, but are not limited to, statements with respect to the Company's anticipated future results and events, future liquidity, planned capital expenditures, amount of pension plan contributions, status and impact of systems implementation, the ability of the Company to successfully implement its strategic initiatives and cost reduction and productivity improvement initiatives as well as the impact of such initiatives. The reader should not place undue reliance on any forward-looking statements included herein. These statements speak only as of the date made and the Company is under no obligation and disavows any intention to update or revise such statements as a result of any event, circumstances or otherwise, except to the extent required under applicable securities law. MANAGEMENT'S DISCUSSION AND ANALYSIS NON-GAAP FINANCIAL MEASURES In addition to discussing earnings in accordance with IFRS, this MD&A provides adjusted earnings before interest, taxes, depreciation and amortization (\"adjusted EBITDA\") as a non-GAAP nancial measure. Adjusted EBITDA is dened as net earnings before income tax expense, other income, dividend income, interest income, realized gains or losses on disposal of available-for-sale nancial assets, interest expense, depreciation, amortization and net impairment losses. The following table reconciles the most comparable GAAP measure, net earnings, to adjusted EBITDA. Management believes that adjusted EBITDA is an important indicator of the Company's ability to generate liquidity through operating cash ow to fund working capital needs and fund capital expenditures and uses the metric for this purpose. The exclusion of dividend and interest income eliminates the impact of revenue derived from non-operational activities. The exclusion of depreciation, amortization and impairment charges eliminates the non-cash impact. The intent of adjusted EBITDA is to provide additional useful information to investors and analysts and the measure does not have any standardized meaning under IFRS. Adjusted EBITDA should therefore not be considered in isolation or used in substitute for measures of performance prepared in accordance with IFRS. Other companies may calculate adjusted EBITDA differently. From time to time, the Company may exclude additional items if it believes doing so would result in a more effective analysis of underlying operating performance. The exclusion of certain items does not imply that they are non-recurring. The Company uses a key performance indicator (\"KPI\"), same store sales, to assess store performance (including each banner's e-commerce store) and sales growth. Same store sales are dened as sales generated by stores that have been continuously open during both of the periods being compared and include e-commerce sales. The same store sales metric compares the same calendar days for each period. Although this KPI is expressed as a ratio, it is a non-GAAP nancial measure that does not have a standardized meaning prescribed by IFRS and may not be comparable to similar measures used by other companies. Management uses same store sales in evaluating the performance of stores and considers it useful in helping to determine what portion of new sales has come from sales growth and what portion can be attributed to the opening of new stores. Same store sales is a measure widely used amongst retailers and is considered useful information for both investors and analysts. Same store sales should therefore not be considered in isolation or used in substitute for measures of performance prepared in accordance with IFRS. The following table reconciles net earnings (loss) to adjusted EBITDA for the three months and scal year ended January 31, 2015 and February 1, 2014: FOR THE THREE MONTHS ENDED JANUARY 31, 2015 FEBRUARY 1, 2014 Net earnings (loss) Depreciation, amortization and net impairment losses Other income 1 Dividend income Interest income Realized (gains) losses on disposal of available-for-sale nancial assets Impairment losses on available-for-sale nancial assets Interest expense Income tax expense (recovery) Adjusted EBITDA Adjusted EBITDA as % of sales 1 $ $ 4,407 12,265 - (409) (377) (4,045) 384 88 1,829 14,142 5.99% $ $ (2,571) 17,312 (6,054) (873) (184) 248 2,007 114 (1,863) 8,136 3.38% FOR THE FISCAL YEAR ENDED JANUARY 31, 2015 FEBRUARY 1, 2014 $ $ 13,415 54,038 - (2,298) (994) (4,820) 958 394 4,112 64,805 6.90% $ $ 10,788 63,724 (6,054) (3,481) (621) 248 2,699 496 2,654 70,453 7.34% Other income comprises a gain on sale of intellectual property rights and proceeds from the settlement of a trademark dispute. REITMANS (CANADA) LIMITED 7 MANAGEMENT'S DISCUSSION AND ANALYSIS CORPORATE OVERVIEW The Company has a single reportable segment which derives its revenue from the sale of ladies' specialty apparel to consumers through its six retail banners. The Company's stores are primarily located in malls and retail power centres across Canada. The Company currently operates under the following banners: The Reitmans banner, operating 341 stores averaging 4,600 sq. ft., is Canada's largest women's apparel specialty chain and leading fashion brand. Reitmans has developed strong customer loyalty through superior service, insightful marketing and quality merchandise. Penningtons is a leader in the Canadian plus-size market, offering trend-right styles and affordable quality for plus-size fashion sizes 14-32. Penningtons operates 139 stores in power centres across Canada averaging 6,000 sq. ft. Addition Elle is a fashion destination for plus-size women with a focus on fashion, quality and t delivering the latest \"must-have\" trends to updated fashion essentials in an inspiring shopping environment. Addition Elle operates 105 stores averaging 6,000 sq. ft. in major malls and power centres nationwide. RW & CO. operates 76 stores averaging 4,500 sq. ft. in premium locations in major shopping malls, catering to a customer with an urban mindset by offering fashions for men and women. 8 Thyme Maternity is a leading fashion brand for moms-to-be, offering current styles for every aspect of life, from casual to work, plus a complete line of nursing fashions and accessories. Thyme operates 68 stores averaging 2,300 sq. ft. in major malls and power centres across Canada. In addition, the Company operates 21 Thyme Maternity shop-in-shop boutiques in select Babies\"R\"Us locations in Canada. In June 2014 the Company closed its remaining Thyme Maternity shop-in-shop boutiques in the U.S. With 94 stores, averaging 3,400 sq. ft., Smart Set is a style destination offering the latest styles in women's fashions to mix, match and innovate from wear-to-work separates, denim, essentials and accessories. On November 25, 2014 the Company announced its plan to close all Smart Set stores. Management determined that its optimum strategy to improve operating results was to refocus its sales and merchandising efforts either through conversion of Smart Set stores to other Company banners or through store closures. The majority of the stores that will be converted will occur by October 31, 2015 while the remaining stores are anticipated to close by the year ending January 28, 2017. The Smart Set banner sales for scal 2015 were $88,856 as compared to $95,764 for scal 2014, while losses from operating activities for scal 2015 were $10,030 as compared to $29,499 for scal 2014 (including an allocation of general overhead costs). The Smart Set banner non-cash asset write-offs amounted to $3,085 for scal 2015. The Company does not anticipate inventory write-downs or material employee severance costs. E-COMMERCE The Company also offers e-commerce website shopping for all of its banners. These online channels offer customers convenience, selection and ease of purchase, while enhancing customer loyalty and continuing to build the brands. REITMANS (CANADA) LIMITED MANAGEMENT'S DISCUSSION AND ANALYSIS RETAIL BANNERS NUMBER OF STORES AT FEBRUARY 1, 2014 Q1 OPENINGS 349 152 101 77 70 129 878 1 1 1 - - - 3 Reitmans Penningtons Addition Elle RW & CO. Thyme Maternity1 Smart Set Total 1 Q1 CLOSINGS Q2 OPENINGS Q2 CLOSINGS Q3 OPENINGS Q3 CLOSINGS Q4 OPENINGS NUMBER OF STORES AT JANUARY 31, 2015 Q4 CLOSINGS (5) (7) - - (2) (5) (19) - - 1 - - - 1 (2) (3) (1) (1) - (11) (18) 2 - 3 3 - - 8 (2) (2) - - - (6) (10) - - - - - - - (2) (2) - (3) - (13) (20) 341 139 105 76 68 94 823 - (102) (102) - - - (2) (67) (69) - - - - - - - - - - - - 21 - 21 Excludes boutiques in Babies\"R\"Us shop-in-shop locations. Thyme Maternity shop-in-shop locations: Babies\"R\"Us - Canada Babies\"R\"Us - U.S. Babies\"R\"Us - Total 23 169 192 - - - Store closings take place for a variety of reasons as the viability of each store and its location is constantly monitored and assessed for continuing protability. In most cases when a store is closed, merchandise at that location is sold off in the normal course of business and any unsold merchandise remaining at the closing date is generally transferred to other stores operating under the same banner for sale in the normal course of business. 9 THREE-YEAR REVIEW OF SELECTED FINANCIAL INFORMATION FOR THE FISCAL YEARS ENDED JANUARY 31, 2015 FEBRUARY 1, 2014 FEBRUARY 2, 20131 (52 WEEKS) (52 WEEKS) (53 WEEKS) Total of stores at end of scal year 2 Sales Earnings before income taxes Net earnings Earnings per share (\"EPS\") Basic Diluted Total assets Total non-current liabilities Dividends per share 823 $ 939,376 17,527 13,415 0.21 0.21 584,391 48,600 $ 0.20 $ $ 878 960,397 13,442 10,788 911 $ 1,000,513 34,778 26,356 0.17 0.17 589,939 51,039 0.65 0.40 0.40 594,968 52,792 0.80 $ 1 Certain gures have been adjusted to reect the impact from the implementation of the amendments to IAS 19 - Employee Benets and adjusted to reect a reclassication of certain items to conform with presentation in the current year. 2 Excludes boutiques in Babies\"R\"Us shop-in-shop locations. REITMANS (CANADA) LIMITED MANAGEMENT'S DISCUSSION AND ANALYSIS Sales over the last three years were impacted by a challenging retail environment. Weak economic conditions, the inux of foreign entrants into Canada and increased e-commerce competition have resulted in a highly competitive landscape as retailers aggressively compete in a limited consumer marketplace. Additionally, as the Company looked to close underperforming stores, it has decreased its store count, with a net reduction of 88 stores over two years. Fiscal 2013 sales included an additional week, due to the Company's retail calendar, resulting in an increase of approximately $13,600 in sales. Despite this increase, sales in scal 2013 were signicantly impacted by a disruption in the ow of inventory to stores as a result of difculties experienced with the deployment of a new warehouse management system. Sales for scal 2014 were weak, with particularly poor performance in the Smart Set banner, despite its efforts to regain acceptance by consumers through repositioning and rebranding. In scal 2015 the net reduction of stores contributed to lower sales in a highly competitive environment and greater e-commerce alternatives. The Smart Set banner continued to perform poorly in scal 2015 in a highly competitive niche and was impacted by signicant discounting as it competed with many retailers targeting the same customer demographics. In scal 2015 the Company announced its plan to close all Smart Set stores. The Company's gross prot, and ultimately net earnings, have been signicantly impacted by uctuations in the Canadian dollar in relation to the U.S. dollar. In the last three years, the Canadian dollar has seen a signicant weakening vis--vis the U.S. dollar. This has resulted in increased merchandise costs as virtually all merchandise payments are settled in U.S. dollars. In scal 2013, the Canadian dollar traded close to par with the U.S. dollar. As consumer demand weakened due to economic conditions higher promotional activity resulted. Fiscal 2013 margins were also impacted by a disruption in the ow of inventory to stores as noted above. In scal 2014 the Canadian dollar began to depreciate signicantly vis--vis the U.S. dollar impacting the Company's gross margin while sales continued to be under pressure due to the competitive landscape. In scal 2014 gross prot was further impacted by substantial discounting in the Smart Set banner. Additionally, in deciding to exit the U.S. marketplace for Thyme Maternity shop-in-shop boutiques, gross prot was also impacted by signicant discounting in its U.S. operations. In scal 2015, as the Canadian dollar further depreciated against the U.S. dollar, the Company's gross margin was negatively impacted which was offset by improved inventory and markdown management. 10 Despite a challenging retail environment over the past three years, the Company's balance sheet has remained strong. The Company has continued to maintain a strong position in cash, cash equivalents and marketable securities. Inventories, although trending somewhat higher on a per store basis, continue to be closely managed. The Company invested considerably in capital expenditures for scal 2013 in both store renovations and systems technology at the head ofce. In scal 2014, the Company signicantly reduced its capital expenditures to $34,524 and to $28,960 in scal 2015. This level of expenditure is below earlier estimates due to cancellations and postponements of planned renovations and store openings. REITMANS (CANADA) LIMITED MANAGEMENT'S DISCUSSION AND ANALYSIS STRATEGIC INITIATIVES The Company has undertaken a number of strategic initiatives to enhance its brands, improve productivity and protability at all levels through system advances and foster a culture of process improvements. Ongoing and new Company initiatives include: INITIATIVES STATUS The Company recently announced a plan to close the stores operating under the Smart Set banner. It is in the early stages of executing its planned conversion and closure of the remaining Smart Set stores. Over the next twelve to eighteen months the Company plans to convert approximately 74 of its remaining Smart Set stores to other banners while closing 20 stores. This strategy is expected to improve operating results by allowing the Company to refocus its sales and merchandising efforts on the remaining banners. In March 2015, the Company launched a Penningtons product offering through Amazon.com in the U.S. This entrance into e-commerce in the U.S. provides the Company with an introduction of its plus-size offering in the U.S. market while leveraging its current buying and distribution systems. The Company is committed to continued investment in e-commerce, including improvements in customer relationship management and technology. The Company continues to invest in e-commerce, including the deployment of mobile technology in fiscal 2015. An initiative is underway to optimize the use of the Company's customer relationship database through technological improvements such as advanced email technology enabling targeted marketing. The Company is pleased with the continued growth in e-commerce sales. Continuation of a companywide supply chain optimization and retail enterprise initiative, internally branded as \"SCORE\Cash flow analysis (REITMANS Limited) The trade receivables for the period ending 31 January 2015 was $4,599 while the balance for the period ending 31 January 2014 was $6,422. This represents a decrease in trade receivables by $1,823 or a 28.4% change. This change increases the operating cash flows for the company. This is because the reduction in the trade receivables means that more customers had paid their debts for the period and also for the previous periods. Some of the customers who owed the company in the previous period have cleared their debts. There was increase in receivables turnover. A decrease in trade receivables leads to a cash inflow for the company. The operating cash flows for the period will therefore increase by $1,823. The inventories for the period ending 31 January 2015 was $109,601 while the balance for the period ending 31 January 2014 was $106,440. This is a decrease in inventories by $3,161 representing a change of 2.9 %. This change increases the operating cash flows for the company since a decrease in inventories means that more stock was sold during the period. More cash was derived from the sale of the inventories. In the previous period, more goods were not sold as compared to the amount of sales in the current period. The decrease in inventory levels shows increase in sales level and thus the increase in cash flows. There will therefore be an operating cash inflow of $3,161 for the period resulting from a decrease in the inventories. Cash flow analysis (REITMANS Limited) The trade receivables for the period ending 31 January 2015 was $4,599 while the balance for the period ending 31 January 2014 was $6,422. This represents a decrease in trade receivables by $1,823 or a 28.4% change. This change increases the operating cash flows for the company. This is because the reduction in the trade receivables means that more customers had paid their debts for the period and also for the previous periods. Some of the customers who owed the company in the previous period have cleared their debts. There was increase in receivables turnover. A decrease in trade receivables leads to a cash inflow for the company. The operating cash flows for the period will therefore increase by $1,823. The inventories for the period ending 31 January 2015 was $109,601 while the balance for the period ending 31 January 2014 was $106,440. This is a decrease in inventories by $3,161 representing a change of 2.9 %. This change increases the operating cash flows for the company since a decrease in inventories means that more stock was sold during the period. More cash was derived from the sale of the inventories. In the previous period, more goods were not sold as compared to the amount of sales in the current period. The decrease in inventory levels shows increase in sales level and thus the increase in cash flows. There will therefore be an operating cash inflow of $3,161 for the period resulting from a decrease in the inventories