1. Download the 2013 10-K Annual Report for JCPenney (JCP) either directly through the
Assignment Guidelines and Rubrics folder in Blackboard or through the EDGAR website, and
access the 2013 Annual Report for the corporation by entering the letters JCP (for JCPenney)
in the Fast Search box on the top right of the webpage. Download the Annual Report on your
computer for easy reference throughout the course, or bookmark the EDGAR site. Note that
other reports (8-Ks, 10Qs, Correspondence) are also available through the EDGAR website.
1. Find the 2013 Income Statement. Create a chart in Excel using the
sample format below to summarize the revenue in dollars and percent of growth
year over year for the past three years (from 2010–2012), and then answer the
questions that follow.
2012 $ Rev % Chg 2011 $ Rev % Chg 2010 $ Rev % Chg 5. Did revenue grow over the three years (from 2010–2012)? Indicate any
years when either revenue or the rate of growth declined year over year.
6. Create a similar chart as above for profitability. Indicate where profits grew
or declined year over year. Indicate any year(s) where the rate of growth
declined year over year.
7. Create a chart for expenses, including the major categories of expense.
Indicate where the following expense categories grew or declined year
over year. Indicate where the rate of increase or decline changed, year
over year:
a)
b)
c)
d)
e)
f) Wages
Benefits
Cost of goods sold
Facilities
Marketing and sales
Operations 8. Locate the balance sheet. Create a chart of assets, liabilities, and owners’
equity for 2011 and 2012. Calculate the percent of growth or decline in
each area from 2011 to 2012.
9. Taking assets and liabilities plus equity into account, what three accounts
changed the most in the last year? 10. Was there any change in stockholders’ equity from 2011 to 2012?
Describe how the change came about.
11. Locate the Cash Flow Statement in the annual report and answer the
following questions:
a) Between Operating, Investing, and Financing cash flows, rate the sources of
cash in terms of significance (1st=largest, 3rd=smallest).
b) What is the most significant change in cash for this company in the 3 years
from2010 to 2012? 1. Refer to the Annual Report.
a) Comparing revenues, profits, and expenses, list the factors driving yearover-year changes (e.g., increase in sales, decline in sales,
disproportionate rise/reduction in facilities costs, disproportionate
increase/reduction in cost of goods sold, one-time charges or events).
b) Have operating expenses been managed in proportion to growth or
declines in revenue over the past five years?
1. Review the management statement(s) for each of the three major financial
statements in the Annual Report. List three reasons provided by the firm–either onetime or continuing—that explain the performance of the business in the most recent
three years.
2. Review the Supporting Schedules in the Annual Report. Calculate the following
financial ratios for 2012:
a) Liquidity ratio
b) Debt ratio
c) Earnings per share
3. Review pages 17–23 in JCPenney’s report. Review the Market for trant’s Common Equity, Five-Year Total Stockholder Return Comparison, Five Year Financial
Summary, Five Year Operations Summary, and Adjusted Operating Income/(Loss).
Considering your review of the key financial statements and the accompanying
management statements in the Annual Report, summarize the two or three main
issues facing the company and the areas of management focus you recommend for
the company in the short term.
