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3,80 1.792 2.2 The Income Statement (Summary of Statements that follow summarizes the financ difficulty remaining financially viable these pa financial ratios (as listed) and

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3,80 1.792 2.2 The Income Statement (Summary of Statements that follow summarizes the financ difficulty remaining financially viable these pa financial ratios (as listed) and interpret the ummary of Operating Results Balance Sheet & Cash Flow marizes the financial conditions for IC Penny. JC Penny has had ancially viable these past several years. Compute the various cu and interpret the firm's financial health over the quarter shown. (a) Compute Current Assets (b) Compute Current Liabilities (C) Debt Ratio (d) Times-Interest earned ratio (e) Current Ratio (1) Quick (Acid-Test) Ratio (8) Inventory Turnover Ratio (h) Day's Sales Outstanding (1) Total Assets Turnover 0) Profit Margin on Sales (k) Retun on Total Assets (1) Return on Common Equity (m) Price-to-Earnings Ratio (n) Book Value per Share J. C. PENNEY COMPANY, INC. SUMMARY OF OPERATING RESULTS (Unaudited) (Amounts in millions except per share data) % Ine. (Dec.) Inc. (Dec.) Three Months Ended August 3, 2019 August 4, 2018 2.500 5 2 ,762 110 2.619 2.329 (7.4) (9.2 % August 1, 2019 4,948 5 226 5,174 Six Months Ended August 4. 2018 5 ,346 154 S 5,500 46.8 % (5.9)96 (7.4)% 1.585 1,831 3,215 3.543 (93) 870 137 880 140 12 (11) (2.1% (75.0% 1,726 284 (2) 1,706 281 (6) 1.2 % 1.1% (66.7% + + 2.602 100.0 96 (9.29% 100.0 % 27 5,250 (76) 100.0 % (5.1) (100.09% (36) + + (19) (31.6)% (26) (38) (316) Statements of Operations Total net sales Credit income and other Total revenues Costs and expenses/(income): Cost of goods sold (exclusive of depreciation and amortization shown separately below) Selling general and administrative (SGRA) Depreciation and amortization Real estate and other, net Restructuring and management transition Total costs and expenses Operating income (los) Other components of net periodic pension cost income) (Gain) loss on extinguishment of debt Net interest expense Income (loss) before income taxes Income tax expense/(benefit Net incomelloss) Earnings/(loss) per share-basic and diluted Financial Data: Comparable store sales increase (decrease) (1) Ratios as a percentage of total net sales Cost of goods sold SG&A expenses Operating income loss) Effective income tax rate Common Shares Data: Issued and outstanding shares at end of period Weighted average shares - basic Weighted average shares. diluted + 74 100.0 % (6.3% 35.2 % (1) 147 (196) 157 (175) (43) (96) 100.0 % (6.49% (12.0)% 50.0 % (12.8% (48) $ (101) $2.5% (202) (179) (0.15) S (0.32) 53.1% (063) $ (0.57) (10.5)% (9.0% 0.3 % (7.39% 0.2% 63.2 % 34.7% 0.7 % 11.6% 66.3 % 31.9% (1.3% 5.2% 65.0 % 34.9% (1.5% 3.1 % 66.3 % 31.9% (0.6% 2.3% 317.7 317.7 319.4 319.4 314.8 315.7 315.7 314.8 314.8 318.6 318.6 314.8 (1) Comparable store sales include sales from all stores, including sales from services, shat have been open for 12 consecutive full fiscal months and Internet sales Stores closed for an extended period are no included in comparable store sales calendations, while store remodeled and minor expansions not requiring store clorure remain in the calculations. Certain itu, much ar sales return estimates and store liquidation sales, are excluded from the Company's calculation. Our definition and calculation of comparable store sales may differ from other companies in the retail industry SUMMARY BALANCE SHEETS (Unaudited) (Amounts in millions) August 3, 2019 August 4, 2018 171 163 12 Summas Balance Sheets: Current assets: Cash in banks and in transit Cash short-term investments Cash and cash equivalents Merchandise inventory Prepaid expenses and other Total current assets Property and equipment, net Operating lease assets Prepaid pension Other assets Total assets 175 2.471 275 182 2,824 221 3,227 4,058 2.921 3,591 925 166 657 8.260 66 S 8.058 910 878 970 1,025 197 Liabilities and stockholders' equity Current liabilities: Merchandise accounts payable Other accounts payable and accrued expenses Current operating lease liabilities Current portion of finance leases and note payable Current maturities of long-term debt Total current liabilities Noncurrent operating lease liabilities Long-term finance leases and note payable Long-term debt Deferred taxes Other liabilities Total liabilities Stockholders' equity Total liabilities and stockholders' equity 2,129 1,089 1,984 208 3,589 3,960 144 121 368 546 7.297 963 6,842 1.216 8.058 8.260 S SUMMARY STATEMENTS OF CASH FLOWS (Unaudited) (Amounts in millions) Six Months Ended August 3, 2019 August 4, 2018 (202) 5 (179) 17 (3) 32 (1) 3 (1) 284 (29) (57) 23 Statements of Cash Flows: Cash flows from operating activities Net income/(loss) Adjustments to reconcile net income (loss) to net cash provided by used in) operating activities Restructuring and management transition Asset impairments and other charges Net (gainy loss on sale of non-operating assets Net (gainy loss on sale of operating assets (Gain loss on extinguishment of debt Depreciation and amortization Benefit plans Stock-based compensation Deferred taxes Change in cash from: Inventory Prepaid expenses and other assets Merchandise accounts payable Accrued expenses and other Net cash provided by used in operating activities Cash flows from investing activities: Capital expenditures Proceeds from sale of non-operating assets Proceeds from sale of operating assets 281 (37) 6 (1) (34) (21) 0 (63) (115) (135) (146) (221) 12 (133) (100) 946 (946) 400 2.258 (2,081) (20) Net cash provided by (used in) investing activities Cash flows from financing activities: Proceeds from issuance of long-term debt Proceeds from borrowings under the credit facility Payments of borrowings under the credit facility Premium on early retirement of long-term debt Payments of finance leases and note payable Payments of long-term debt Financing costs Proceeds from stock issued under stock plans Tax withholding payments for vested restricted stock Net cash provided by used in) financing activities Net increase (decrease) in cash and cash equivalents Cash and cash equivalents at beginning of period Cash and cash equivalents at end of period (1) (26) (586) (7) (158) $ 175

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