In 2016 and 2015, Sears Holding Corporation reported net losses and negative cash flows from operating activities. Using the company’s Form 10-K for the fiscal year ended January 28, 2017 (2016), complete the requirements shown in the following. The Form 10-K can be found on the company’s website. It can also be obtained using the EDGAR system following the instructions in Appendix A.

Required
a. Determine Sears’s net incomes and cash flow from operating activities for 2016 and 2015.
b. How was Sears able to pay its bills given that it has such large, negative net cash flows from operating activities in 2016 and 2015? Provide a separate answer for each year.