Title Pagehussain Manalacct 504 6073321 Aug 14professor Nort

Title Pagehussain Manalacct 504 6073321 Aug 14professor Nortonfinanci Title Pagehussain Manalacct 504 6073321 Aug 14professor Nortonfinanci Title Page Hussain, Manal ACCT -Aug-14 Professor Norton Financial Statement Analysis Project - Week 7 Profiles History: In 1962, Max Kohl opened the first Kohl's Department store in Brookfield, Wisconsin. He started his career with a small grocery business that developed into the largest supermarket chain in the Milwaukee area. By 1972 Kohl's expanded into 5 department stores. In 1978, BATUS acquired purchased 80% of the Kohl's food and department stores along with Gimbels, Saks Fifth Avenue, and Marshalls. BATUS then sold Kohl's to Great Atlantic and Pacific Tea Company (A&P), which closed the Kohl's food store in 2003. Expansion: By 2000, Kohl's operated 298 stores in 25 states with 43,000 associates. In 2006, 85 new stores, including expansion into the Northwest with stores in Oregon and Washington, were opened. To support the continuous growth in the Southwest, Kohl's then opened up in Patterson, California, with a capacity to support 110 stores. By the end of the year, 817 stores in 47 states with 114,000 associates were operating as fully functioning department store retailers selling clothing, accessories, and house furnishings. Ratios: Use this Excel spreadsheet to compute ratios; show your computations for all ratios on this tab and also include your commentary. The financial statements used to calculate these ratios are available in Appendix A and Appendix B of your textbook. Kohl's and JC Penney interpretation and comparison between the two companies' ratios (reading the Appendix of Chapter 13 will help you prepare the commentary). The comparison of the ratios is an important part of the project. A good approach is to briefly explain what the ratio tells us. Indicate whether a higher or lower ratio is better. Then compare the two companies on this basis. Remember—each ratio below requires a comparison. Earnings per Share of Common Stock (basic - common): As given in the income statement: Kohl's $3.67, JC Penney $0.89 Current Ratio: Kohl's current assets $5,645,000,000,000 = 2.08; JC Penney’s current assets $2,113,485 = 1.44; current liabilities: Kohl's $2,710,000,000,000; JC Penney’s $1,471,110. Gross Profit Margin: Kohl's gross profit $7,032,000,000 = 38.2%; JC Penney $2,859,882 = 43.0%; net sales: Kohl's $18,391,000,000; JC Penney $6,644,252. Rate of Return (Net Profit Margin) on Sales: Kohl's net income $1,114,000,000 = 6.1%; JC Penney