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Posted on Aug 26, 2024

first picture is the question. next 2 pictures are the 2 different companies i need the answers for. JCP and KSS Requirements: The questions are

first picture is the question. next 2 pictures are the 2 different companies i need the answers for. JCP and KSS image text in transcribed

Requirements: The questions are highlighted in red. Please respond to each question using black font below each question. 1. Examine revenue and related accounts. Revenue is the largest item on the income statement, so we need to assess it on a quantitative and qualitative basis. a. Explain what horizontal analysis is and why it is useful in the analysis process. Compare the horizontal analyses for the income statements of the two companies that I have prepared in the Excel Horizontal Analysis attachmentAnalyze each company over the last two years to identify two account changes that should be investigated for each company. You need to specifically identify the percentage change on the horizontal analysis provided for each company in your response. Do not reference a computed figure on the income statement like Gross Margin, but a specific account. Why did you pick these items? FILE HOME INSERI PAGE LAYOUT FORMULAS DIA REVIEW VIEW -11 - 11 - KA - P Wrap Text General Normal Good Bad Calculation aste V A S Merge & Center - $ -% Check Cell & Cut Anal Copy Format Painter B Clipboard - X Conditional format as Neutral Formatting Table Alignment 26 Font fax D J.C. Penney Company, Inc. Horizontal Analysis Percentage Amount (890.00) 36.00 (854.00) 12 Months Ended in Millions $ Feb. 02, 2019 Feb. 03, 2018 $ 11,664 $ 12,564 S 355 319 $ 12,019 12.873 $ 3 Total net sales 4 Credit income and other 5 Total revenues 6 Costs and expenses (income): Cost of goods sold (exclusive of depreciation and amortization shown separately below) 11.29% -6.63% -4.12% (338.00) (249.00) 7.870 3.596 556 (19) (14.00) -2.46% 8.208 5 3,845 $ 570 $ (146) S 184 S 12.661 $ 212 $ 98 $ 33 $ 325$ (244) $ (126) $ $ (118) S 8 Selling general and administrative (SG&A) 9 Depreciation and amortization 10 Real estate and other, net 11 Restructuring and management transition 12 Total costs and expenses 13 Operating income/loss) 14 Other components of net periodic pension and postretirement benefit cost (income) 15 Loss on extinguishment of debt 16 Net interest expense 17 Income (loss) before income taxes 18 Income tax expense/(benefit) 19 Net income/loss) 20 127.00 NM 162.00) (636.00) (218.00) (169.00) (10.00) (12.00) (27.00) NIM 110.00 NM (137.00) N/M -88.04% -5.02% -102 83% -172.45% -30 30% -3.699 (16 es 22 NM designates not meaningful and is used when the base year is zero or negative JCP HorizontalAnalysis KSS HorizontalAnalysis READY we x] much the woh and Windows 2019Summer HorizontalAnalysis - Excel FILE INSERT PAGE LAYOUT FORMULAS DATA REVIEW VIEW HOME X Cut Arial 3 . Wrap Text General Normal 12 HAA . . Bad Calcu Da Copy Paste + Merge & Center - $ % Conditional Format as Neutral Formatting Table Format Painter BIU. Clipboard Number Styles A18 X x N/M designates not meaningful and is used when the base year is zero or negative. Horizontal Analysis Kohl's Corporation Income Statement 12 Months Ended in Millions $ Feb. 02, 2019 Feb. 03, 2018 $ 20,229 $ 20,084 S 12.199 12.176 $ $ 8,030 $7.908 $ Amount | 145.00 23.00 Percentage 0.72% 0.19% 1.54% 122.00 $ 5,601 1.82% -2.72% 964 3 Total revenue 4 Cost of merchandise sold 5 Gross Margin 6 Operating expenses: 7 Selling, general and administrative 8 Depreciation and amortization 9 Impairments, store closing and other costs 10 Operating income 11 Interest expense.net 12 Loss on extinguishment of debt 13 Income before income taxes 14 Provision for income taxes 15 Net income 1,361 256 $ 5,501 $ 991 $ OS 1.416 5 299 LO 1.117 $ -3.88% 14.38% 1.042 241 $ 801 Gononen 258 -6.71% -6.59% -6.75% $ 859 18 N/M designates not meaningful and is used when the base Year is zero or negative Requirements: The questions are highlighted in red. Please respond to each question using black font below each question. 1. Examine revenue and related accounts. Revenue is the largest item on the income statement, so we need to assess it on a quantitative and qualitative basis. a. Explain what horizontal analysis is and why it is useful in the analysis process. Compare the horizontal analyses for the income statements of the two companies that I have prepared in the Excel Horizontal Analysis attachmentAnalyze each company over the last two years to identify two account changes that should be investigated for each company. You need to specifically identify the percentage change on the horizontal analysis provided for each company in your response. Do not reference a computed figure on the income statement like Gross Margin, but a specific account. Why did you pick these items? FILE HOME INSERI PAGE LAYOUT FORMULAS DIA REVIEW VIEW -11 - 11 - KA - P Wrap Text General Normal Good Bad Calculation aste V A S Merge & Center - $ -% Check Cell & Cut Anal Copy Format Painter B Clipboard - X Conditional format as Neutral Formatting Table Alignment 26 Font fax D J.C. Penney Company, Inc. Horizontal Analysis Percentage Amount (890.00) 36.00 (854.00) 12 Months Ended in Millions $ Feb. 02, 2019 Feb. 03, 2018 $ 11,664 $ 12,564 S 355 319 $ 12,019 12.873 $ 3 Total net sales 4 Credit income and other 5 Total revenues 6 Costs and expenses (income): Cost of goods sold (exclusive of depreciation and amortization shown separately below) 11.29% -6.63% -4.12% (338.00) (249.00) 7.870 3.596 556 (19) (14.00) -2.46% 8.208 5 3,845 $ 570 $ (146) S 184 S 12.661 $ 212 $ 98 $ 33 $ 325$ (244) $ (126) $ $ (118) S 8 Selling general and administrative (SG&A) 9 Depreciation and amortization 10 Real estate and other, net 11 Restructuring and management transition 12 Total costs and expenses 13 Operating income/loss) 14 Other components of net periodic pension and postretirement benefit cost (income) 15 Loss on extinguishment of debt 16 Net interest expense 17 Income (loss) before income taxes 18 Income tax expense/(benefit) 19 Net income/loss) 20 127.00 NM 162.00) (636.00) (218.00) (169.00) (10.00) (12.00) (27.00) NIM 110.00 NM (137.00) N/M -88.04% -5.02% -102 83% -172.45% -30 30% -3.699 (16 es 22 NM designates not meaningful and is used when the base year is zero or negative JCP HorizontalAnalysis KSS HorizontalAnalysis READY we x] much the woh and Windows 2019Summer HorizontalAnalysis - Excel FILE INSERT PAGE LAYOUT FORMULAS DATA REVIEW VIEW HOME X Cut Arial 3 . Wrap Text General Normal 12 HAA . . Bad Calcu Da Copy Paste + Merge & Center - $ % Conditional Format as Neutral Formatting Table Format Painter BIU. Clipboard Number Styles A18 X x N/M designates not meaningful and is used when the base year is zero or negative. Horizontal Analysis Kohl's Corporation Income Statement 12 Months Ended in Millions $ Feb. 02, 2019 Feb. 03, 2018 $ 20,229 $ 20,084 S 12.199 12.176 $ $ 8,030 $7.908 $ Amount | 145.00 23.00 Percentage 0.72% 0.19% 1.54% 122.00 $ 5,601 1.82% -2.72% 964 3 Total revenue 4 Cost of merchandise sold 5 Gross Margin 6 Operating expenses: 7 Selling, general and administrative 8 Depreciation and amortization 9 Impairments, store closing and other costs 10 Operating income 11 Interest expense.net 12 Loss on extinguishment of debt 13 Income before income taxes 14 Provision for income taxes 15 Net income 1,361 256 $ 5,501 $ 991 $ OS 1.416 5 299 LO 1.117 $ -3.88% 14.38% 1.042 241 $ 801 Gononen 258 -6.71% -6.59% -6.75% $ 859 18 N/M designates not meaningful and is used when the base Year is zero or negative