Please help to understand the solution for year 2

Permanent Versus Transitory Earnings Entrust, lnc., is a global provider of security software; it operates in one business segment involving the design, production, and sale of software products for securing digital identities and information. The consolidated statements of operations for a three-year period (all values in thousands) follows On Januaw 1, Year 1, the Entrust common shares traded at $10.40 per share; by year end Year 3, the shares traded at $3.80 per share. The company's cash flow from operations was $(27,411), $(20,908), and $9,606, for Year 1, Year 2, and Year 3, respectively. Calculate the sustainable earnings of Entrust, Inc., for each of the three years. Compare the company's reported net income (loss) with its sustainable earnings, Does Entrust's share price at year-end Year 3 reflect the firm's apparent turn-around? Why or why not? ENTRUST, INC. Consolidated Statements of Operations Year Ended December 31 (S thousands) Vear 3 Year 2 Year 1 Revenues Product $31,945 $33,624 $47,384 Services and maintenance 61,662 56,920 58,013 Total revenues 93,607 90,544 105,397 Cost of Revenues Product $4,379 $5,571 $5,511 Services and maintenance 29,105 29,825 32,073 Amortization of purchased product rights 384 568 1,136 Total cost of revenues 33,868 35,964 38,720 Gross prot 59,739 54,580 66,677 Operating expenses Sales and marketing 26,322 34,985 44,128 Research and development 17,266 22,566 24,151 General and administrative 12,569 13,143 14,840 Impairment of purchased product rights 1,364 (1,359) Restructuring charges and adjustments 14,178 (1,309) Total operating expenses 56,157 86,236 80,451 Income (loss) from operations 3,582 (31,656) (13,774) Other income (expense) Other income (expense) Interest income 1,281 1,680 3,346 Foreign exchange gain (loss) 429 (431) (72) Loss from equity investments (1,341) (833) (832) Realized loss on investments (2,780) (450) Write-down of long-term strategic investments (2,780) (1,238) Total other income (expense) 369 (5,144) 754 Income (loss) before income taxes and minority interest 3,951 (36,800) (13,020) Noncontrolling interest in subsidiary 4 Income (loss) before income taxes 3,955 (36,800) (13,020) Provision for income taxes 1,542 442 1,055 Net income (loss) $ 2,413 $(37,242) $(14,075) Calculate the sustainable earnings of Entrust, Inc., for each of the three years. Remember to use negative signs with answers, when appropriate. Year 3 Year 2 Year 1 Permanent earnings $ 3,754 v $ (46,391) x $ (14,223) v