Assignment 1 Complete Solution

Financial Statement Analysis Project—A Comparative Analysis of Kohl’s Corporation and J.C. Penney Corporation

 

Below is the link for the financial statements for Kohl’s Corporation for the 2010 fiscal year ending January 29, 2011. Under the term Groupings Filter, change the term All Forms to Annual Filings using the drop-down arrow and press Search.

 

You should then scroll down and select the 10k dated 3/18/2011 and choose to download in Word or PDF format.

 

http://www.kohlscorporation.com/InvestorRelations/sec-filings.htm

 

Below is the link for the financial statements for J.C. Penney Corporation for the 2010 fiscal year ending January 29, 2011. Under the term Groupings Filter, change the term All Forms to Annual Filings using the drop-down arrow and press Search.

 

You should then scroll down and select the 10k dated 3/29/2011 and choose to download in Word format.

 

http://ir.jcpenney.com/phoenix.zhtml?c=70528&p=irol-sec

Description

 

Using the financial statements for Kohl’s Corporation and J.C. Penney Corporation, respectively, you will calculate and compare the financial ratios listed further down this document for the fiscal year ending 2010 and prepare your comments about two companies’ performance based on your ratio calculations.

 

 

Overall Requirements

 

 

 For the Final Submission

 

Your final Excel workbook submission should contain the following. You cannot use any software but Excel to complete this project.

1.     A completed worksheet title page tab, which is really a cover sheet with your name, the course, the date, your instructor’s name, and the title for the project

2.     A completed worksheet profiles tab, which contains a one-paragraph description regarding each company with information about their histories, what products they sell, where they are located, and so on

3.     All 16 ratios for each company with the supporting calculations and commentary on your worksheet ratio tab. Supporting calculations must be shown either as formulas or as text typed into different cells. The ratios are listed further down this document. Your comments for each ratio should include more than just a definition of the ratio. You should focus on interpreting each ratio number for each company and support your comments with the numbers found in the ratios.

4.     The Summary and Conclusions worksheet tab, which is an overall comparison of how each company compares in terms of the major category of ratios described in Chapter 13 of your textbook. A nice way to conclude is to state which company you think is the better investment and why.

5.     The Bibliography worksheet tab must contain at least your textbook as a reference. Any other information you use to profile the companies should also be cited as a reference.

Required Ratios for Final Project Submission

1.     Earnings per Share of Common Stock

1. Current Ratio
2. Gross Profit Margin
3. Rate of Return on Sales (Net Profit Margin) 
4. Inventory Turnover
5. Days’ Inventory Outstanding (DIO)

7.     Accounts Receivable Turnover

8.     Days’ Sales Outstanding (DSO)

1. Asset Turnover
2. Rate of Return on Total Assets (ROA)
3. Debt Ratio
4. Times Interest Earned Ratio
5. Dividend Yield (For the purposes of this ratio, use Yahoo Finance to look up current dividend yield and stock price; just note the date that you looked up this information.)
6. Rate of Return on Common Stockholders’ Equity (ROE)
7. Free Cash Flow
8. Price/Earnings Ratio (Multiple) (For the purpose of this ratio, for both Kohl’s and J.C. Penney, use the market price per share on January 31, 2011.)

For the Draft

 

Create an Excel spreadsheet or use the project template to show your computations for the first 10 ratios listed above. The more you can complete regarding the other requirements, the closer you will be to completion when Week 7 arrives. Supporting calculations must be shown either as formulas or as text typed into different cells. If you plan on creating your own spreadsheet, please follow the format provided in the Tootsie Roll and Hershey template file. 

 

Please upload your draft submission to the Week 5 Dropbox by Sunday at the end of Week 5.

 

Other Helpful Information

 

 

BigCharts.com provides historical stock quotes.

 

Either APA or MLA style can be used to complete the references on your Bibliography tab. There is a tutorial for APA and MLA style within the Syllabus.

Assignment 1 Complete Solution

"It is the market prospect ratio and measures the net income earned per share of outstanding stock. EPS of Kohls is more than J C Penny which indicates stockholders of Kohls are earning more than stockholders of J C Penny." Current ratio measures the a...

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