Dogs and wolves are more closely related to each other than either is to cats. Explain how you would separate these organisms into clades.

I would split these organisms into two paraphyletic groups: 1-one group composed of wolfs and dogs, and 2-one group including all three species (dogs, wolves and cats).

Explanation:

A clade is by definition a monophyletic group, it means that a clade is a group composed of a common ancestor and all its lineal descendants. Moreover, a paraphyletic taxon is a group of organisms that share a most recent common ancestor and some of its descendants. In this case, wolves and dogs can be grouped to form a more inclusive group since both species belong to the same genus (Cani), while dogs, wolves and cats can be grouped to form a major group because these three species are mammal species. In consequence, in this case, we have two paraphyletic groups supported by synapomorphic (shared, derived) characters, since wolfs and dogs represent only two species within genus Canis, while dogs, wolves and cats represent three species within class Mammalia.