short term receivables. The tax rate is 35 %. Evaluate and comment on both the earnings quality and the relative performance of Major machinery Inc. in the most recent quarter relative to the same quarter of the prior fiscal year. (15 marks) Hint: You need to recalculate the Income statement making the necessary adjustments and then compare performance (ROE, EPS) to previous year. Estimated time: 12 minutes. Major Machinary Inc. S million except EPS Quarter ended Dec 30 2015 Quarter ended Dec 30 2016 1,869 14,211 3.36 Net Income Net Revenues Basic EPS Average common shares outstanding ROE 1,611 12,662 2.84 556 20% 567.2 18%