Question 13 (15 points) Due to a change from UFO to FIFO cost accounting system, the company had a pretax benefit of $35 million. Also the company produced again of $ 32 million after tax profits due to the securitization of its short term receivables. The tax rate is 35 %. Evaluate and comment on both the earnings quality and the relative performance of Major machinery ine. 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 1,611 12,662 2.84 Net Income Net Revenues Basic EPS Average common shares outstanding ROE 556 20% 567.2 18%