Sears Canada Inc. was a major Canadian chain of department stores that sold a wide variety of goods including appliances, electronics. apparel, furniture, cosmetics as well as travel and optical services. The company closed its doors in January 2018 after struggling in the previous few years to adapt to a changing retail environment that made increasing use of the Internet to market and sell products and services. Its net earnings (loss), earnings (loss) from operations and net cash flows provided by (used in) operating, investing and financing activities are show below for fiscal years 2011-2016 (in millions of dollars). Earnings (loss) from operations Net earnings (loss) Net cash provided by (used in) operating activities Net cash provided by (used in) investing activities Net cash provided by (used in) financing activities 2016 $(422.4) (321.0) (341.4) 270.7 (5.6) 2015 $(298.3) (67.9) (201.5) 258.9 (5.8) 2014 2013 2012 2011 $(407.3) $(187.8) $(71.8) $(64.1) (328.8) 446.5 101.2 (60.1) (264.6) 85.0 18.9 63.5 (11.0) (56.3) (25.8) (54.7) 837.0 117.4 (537.5) (224.5) Required: 1. Compute the quality of earnings ratio for each of the six years and interpret the results. 2. Re-compute the quality of earnings ratio using earnings (loss) from operations instead of net earnings (loss) and interpret the results. 3. Analyze the company's pattern of cash flows from operating, investing, and financing activities over the six years. What conclusion can you draw from the changing pattern of cash flows? Explain.

Sears Canada Inc. was a major Canadian chain of department stores that sold a wide variety of goods including appliances, electronics. apparel. furniture, cosmetics as well as travel and optical services. The company closed its doors in January 2018 after struggling in the previous few years to adapt to a changing retail environment that made increasing use of the Internet to market and sell products and services. Its net earnings (loss), earnings (loss) from operations and net cash flows provided by (used in) operating, investing and financing activities are show below for fiscal years 2011-2016 (in millions of dollars). 1???? Required: 1. Compute the quality of earnings ratio for each of the six years and interpret the results. 2. Recompute the quality of carnings ratio using earnings (loss) from operations instead of net carnings (loss) and interpret the results. 3. Analyze the company's pattern of cash flows from operating, investing, and financing activities over the six years. What conclusion can you draw from the changing pattern of eash flows? Explain