I am looking for assistance on questions A, B, C, and D. Also if you could please review my percentages in red.
File Home Insert Page Layout Formulas Data Review View Help Tell me what you want to do 15 Share Comments & Cut Arial 11 - A" A = = ab Wrap Text General Normal Bad Good Neutral Calculation IX AutoSum AY O Paste [ Copy BI U - - MA. Merge & Center Conditional Format as Fill Format Painter Check Cell Table . Explanatory ... Input Linked Cell Note 41 nsert Delete Format Clear Sort & Find & Formatting Filter . Select Clipboard Font Alignment Number Styles Cells Editing B26 v fx B E G H K L M N O P 12 Months Ended in Millions $ Percentages J.C. Penney Company, Inc. Common Size Income Statement Feb. 02, 2019 Feb. 03, 2018 Jan. 28, 2017 Feb. 02, 2019 Feb. 03, 2018 N Jan. 28, 2017 Total net sales $ 11,664 $ 12,554 $ 12,571 7.05% 97.52% 7.31% 4 Credit income and other 355 319 347 2.95% 2.48% 2.69% 5 Total revenues 12,019 12,873 12,918 100.00% 100.00% 100.00% Costs and expenses/(income): Cost of goods sold (exclusive of depreciation and amortization shown separately 7 below) 7,870 8,208 8,097 65.48% 63.76% 62.68% 8 Selling, general and administrative (SG&A) 3,596 3,845 3,973 29.92% 29.87% 30.76% 9 Depreciation and amortization 556 570 609 4.63% 4.43% 4.71% 10 Real estate and other, net (19) (146 (111) 0.16% -1.13% 0.86% 11 Restructuring and management transition 22 184 26 0.18% 1.43% 0.20% 12 Total costs and expenses 12,025 12,661 12,594 100.05% 98.35% 97.49% 13 Operating income/(loss) (6) 212 324 0.05% 1.65% 2.51% Other components of net periodic pension and postretirement benefit cost/(income) (71) 98 (53) 14 -0.59% 0.76% -0.41% 15 Loss on extinguishment of debt 23 33 30 0.19% 0.26% 0.23% 16 Net interest expense 313 325 363 2.60% 2.52% 2.81% 17 Income/(loss) before income taxes 271) (244 (16) 2.25% 1.90% -0.12% 18 Income tax expense/(benefit) (16 (126) -0.13% 0.98% 0.01% 19 Net income/(loss) $ (255) $ (118) $ (17 -2.12% 0.92% 0.13% 20 21 22 a. Review the income statement vertical analyses percentage and provide at least two major changes over the three years. Are these changes a positive or negative trend? You should be focusing on specific accounts and not subtotals or totals. 24 25 b. What are the company's 2 largest major expenses for the current year? 26 27 28 c. Discuss the fluctuations in net interest expense and income taxes. What are the cause of these changes in each of the accounts? You need to be specific to what is occurring in the financial statements of each of these companies. Do not provide generic comments. 29 30 31 32 33 d. Was the company more or less profitable when compared to the prior year? What caused the change in income from the prior year? Include in your comments discussion of the gross margin percentage. 34 35 36 JCP_CommonSizeBalanceSheet KSS_CommonSizeBalanceSheet JCP_CommonSizeIncomeStatement KSS_CommonSizeIncomeStatement Ratio and Comments GradingRubric +
