Hi there I 'm missing 2 questions for my group project,

I have attached the whole project on an Excel file but I only need help with this 2 answers. The answer is suppose to be in the pdf I attached about Kohl's

Please help!

#1-m. Kohl's has receivables from credit card transactions at fiscal year-end and yet there is no Accounts Receivable classification on the balance sheet. In what balance sheet line are those receivables included and under what conditions?

#1- k. What percentage of Kohl?s total property and equipment are depreciated at year-end?

Thank you

ACG2021 Fall 2015 Comprehensive Financial Statement Analysis Project Group Members Last Name First Name Panther ID The objective of this exercise is to develop your ability to perform analysis of the financial information included in financial statements. Instructions: You will need the annual report for Kohl's Corporation for fiscal years 2014 and 2013. They will be provided to you in pdf format. Note that Kohl's fiscal year is referenced one year back, so, for example, the 2014 fiscal year relates to the fiscal year which ended on January 31, 2015 and the 2013 fiscal year relates to the year which ended February 1, 2014. Requirement 1: Basic Questions Answer the questions for the fiscal 2014 year in the shaded input box. The location (source) where you can find the answer is provided for you above the shaded input box. Use only that source to answer the question. The Index on the second page of the annual report PDF file gives you a table of contents which allows you to quickly find the sources of the information. Requirement 2 - 6: Ratio and Financial Analysis For the ratios in requirements 2 and 3, provide the formula of the ratio, the amounts used to calculate the ratio and what the ratio measures. Enter your answers in the shaded input boxes. The first one (a.) was completed as an illustration. The ratio formulas are listed in pages 775 - 777 in chapter 13 of your textbook. I have added the number of the ratio listed in pages 775 - 777 to each ratio so that you know exactly how to calculate them. When calculating the ratios, only use the amounts included in the audited financial statements (Item 8. Financial Statements and Supplementary Data); do not just enter those that may be shown in other sections of the annual report. All other sections of the annual report except for the financial statements are not audited and as such the preparer can calculate any other ratios or financial indicators are they wish, not necessarily as the textbook prescribes. If you pick up amounts in other sections you risk getting the question wrong. Since the fiscal 2014 financial statements are comparative, they include info for both fiscal years 2014 and 2013. Use those financial statements to answer the questions about 2013 as well. However, some ratios for the 2013 year will require you go to back an additional year because some of the 2013 ratios use averages which are calculated using the 2013 + 2012 balances. For example, the inventory turnover for 2013 uses average inventory calculated by using the 2013 ending inventory balance + the 2013 beginning inventory balance (which is the ending balance in 2012). You need to obtain the fiscal 2012 ending inventory balance included in the 2012 financial statements which have been provided to you. For ratios that include averages, use a simple average calculation (beginning + ending balance / 2). Other: Several questions have multiple parts. Make sure you answer every part in order to receive full credit. Please do not add columns or rowns to this file. I will be using this file to grade and my grading template is in this same format. The points assigned to each question are included in the boxes highlighted in pink on the right-hand side of the question. There are 141 points which is equivalent to 100%. Point Summary Requirement 1 39 Requirement 2 - 6 102 Total 141 100% Requirement 1 Answer BASIC INFORMATION about company operations and financial results for the 2014 fiscal year ending January 31, 2015. NOTE: Use amounts found in the "Source" only to answer these questions. Points a. As of January 31, 2015, how many stores did Kohl's operate and in how many states? Source: Item 8. Notes to Consolidated Financial Statements: Note #1 1 As of January 31, 2015, Kohl's operated 1,162 department stores in 49 states b. When does the fiscal year end each year? How many weeks did fiscal year 2014 have? How about 2013 and 2012? Source: Item 8. Notes to Consolidated Financial Statements: Note #1 1 Fiscal Year 2014 ended January 31st, 2015. Fiscal year 2013 ended February 1st, 2014 and fiscal year 2013 ended February 2nd, 2013. Fiscal year 2014 had 52 weeks, fiscal year 2013 had 52 weeks as well, and fiscal year 2012 had 53 weeks. c. Does Kohl's report a multi-step or single-step income statement? How do you know? Source: Item 8. Consolidated Statements of Income 3 Kohls reports a multi-step income statement. Because it segregates the operating revenues and operating expenses from the nonoperating revenues, nonoperating expenses, gains, and losses. In addition, it shows the gross marging. d. What is Kohl's largest asset? Largest liability? What is the amount of each? Source: Item 8. Consolidated Balance Sheets 2 Kohl's largest asset is their Property and Equipment at 8,515 Milllions. Kohl's largest liability is their Long-term Dept at 2,793 Millions e. How many shares of common stock are Issued? Outstanding? Source: Item 8. Consolidated Balance Sheets 2 The shares of common stock issued for fiscal year 2014 are 364 Million, and 367 million are outstanding. f. How many shares of treasury stock did Kohl's purchase during the year? Source: Item 8. Consolidated Statements of Changes in Shareholders' Equity 2 Kohl's purchased 166 million shares of treasury stock g. How much was dividends declared and paid per share? Source: Item 8. Consolidated Statements of Income Dividends declared and paid per share is $1.56 for Fiscal year 2014 2 h. When does Kohl's record revenue sold at the stores? What about online sales shipped to customers? Source: Item 8. Notes to Consolidated Financial Statements: Note #1 1 Revenue from the sale of merchandise at the stores is recognized at the time of sale, net of any returns. Sales of merchandise shipped to our customers are recorded based on estimated receipt of merchandise by the customer. i. What method does Kohl's use to value its inventory? Source: Item 8. Notes to Consolidated Financial Statements: Note #1 1 Kohl's value their inventory at the lower of cost or market with cost determined on the first-in, first-out (\"FIFO\") basis using the retail inventory method (\"RIM\"). j. What method does Kohl's use to depreciate its property and equipment? Source: Item 8. Notes to Consolidated Financial Statements: Note #1 1 Depreciation is calculated using the straight-line method over the estimated useful lives of the assets. Leased property and improvements to leased property are amortized on a straight-line basis over the term of the lease or useful life of the asset, whichever is less. k. What percentage of Kohl's total property and equipment are depreciated at year-end? Source: Item 8. Notes to Consolidated Financial Statements: Note #1 2 l. What items are recorded as cash equivalents? Source: Item 8. Notes to Consolidated Financial Statements: Note #1 1 Money market investments, commercial paper and certificates of deposit with original maturities of three months or less; which are carried at approxamitely fair value are all included in Kohl's cash equivalents. Also included are amounts due from credit card transactions with settlement terms of less than five days. m. Kohl's has receivables from credit card transactions at fiscal year-end and yet there is no Accounts Receivable classification on the balance sheet. In what balance sheet line are those receivables included and under what conditions? Source: Item 8. Notes to Consolidated Financial Statements: Note #1 2 n. What types of Other Comprehensive Income items does Kohl's have? Source: Item 8. Consolidated Statements of Comprehensive Income 2 Kohl's has unrealized gain on investments, interest rate derivatives, unrealized loss arising during period, reclassified adjustments for interest expense included in net income as part of the other comprehensive income. o. Was Kohl's debt issued at a discount or premium in the aggregate? How do you know? Source: Item 8. Notes to Consolidated Financial Statements: Note #2 Kohl's debt was issued at a discount of 7 million dollars. I know because it shows it as Unamortized debt discount in the consolidated financial statements. 2 p. What type of items are included in the Various Liabilities to Customers? Why are they classified as liabilities? Source: Notes to Consolidated Financial Statements: Note #1 2 Various liabilities to customers include gift cards and merchandise return cards that have been issued but not presented for redemption. They represent a liabilitie because they have earned revenue but not provided product. If Kohl's issues a t$50 gift card, they are liable to give the card holder $50 worth of merchandise or service or $50 cash if the company liquidates. q. Using a site such as www.hoovers.com or www.finance.yahoo.com, research the discount variety store industry. List three competitors of Kohl's Corporation. Source: WWW.HOOVERS.COM 2 Three competitors of Kohl's are JC Penney, Target, and TjMaxx r. List three Kohl's brands. Source: Item1. Business 1 Kohl's private brands are: Apt. 9, Croft & Barrow, Jumping Beans, SO and Sonoma Life + Style. s. Does Kohl's have any business relations with foreign entities such as suppliers or customers? Source: Item1. Business 2 Yes, Kohl's purchase merchandise from numerous foreign suppliers. t. Describe three risk factors that Kohl's faces. Source: Item 1A. Risk Factors. 1 Three risk factors that Kohl's faces are the decline in the economic conditions since it plays a roll in how much consumers are willing to spend and where. Actions by their competitor, competeing for merchandise, land, customers, prices, etc. Lastly, sourcing inventory in a timely and cost effective manner. u. What was the cause of the increase in average selling price per unit? What was the effect of higher selling prices on the number of units sold? Source: Item 7. Management's Discussion and Analysis: Results of Operations. 3 The increase in selling price per unit was primarily due to increases in national brand merchandise penetration.Units per transaction decreased as customers purchased fewer items in response to the higher prices. Transactions improved throughout the year and were higher in the fourth quarter as the Greatness Agenda initiatives gained traction. v. Did capital expenditures increase or decrease from prior year? What is the explanation for the change? Source: Item 7. Management's Discussion and Analysis: Liquidity and Capital Resources 3 Capital expenditures totaled $682 million in 2014, a $39 million increase over 2013.The increase in capital spending is primarily due to the expansion of our corporate campus, increased IT spending and the purchase and build out of a call center in Texas, partially offset by decreased new store spending. 39 KOHLS 2014 Fiscal Year as of January 31, 2015 Ratio (Refer to pgs 775 - 777 for ratio formula) Calculation of Ratio Show work KOHLS 2013 Fiscal Year as of February 1, 2014 Calculation of Ratio Show work Ratio Ratio Points Requirement 2 Evaluate PROFITABILITY. Using information you have learned in the text and elsewhere, evaluate Kohl's profitability for 2014 compared with 2013. In your analysis, you should compute the following ratios and then comment on what those ratios indicate. NOTE: Use amounts in the audited financial statements only to calculate these ratios (Item 8. of annual report). a. Rate of return on sales #13 4.6% Ratio: Net income / Net sales $ $ 867 19,023 4.7% $ $ 889 19,031