I need to analyze the company Bon-Ton. There are three parts to this question:

A-1 Describe the main issues facing Bon-Ton. Prepare an analysis of the company's strengths, weaknesses, opportunities, and threats.

A-2 Critically analyze the financial condition of Bon-Ton by using ratio analysis. Make sure to use ratio analysis and arrive at the calculations

A-3. Describe the available courses of action that will help the company improve its performance. What recommendation should Smith give regarding the investments in Bon-Ton?

https://hbsp.harvard.edu/download?url=%2Fcourses%2F668447%2Fitems%2FW19184-PDF-ENG%2Fcontent&metadata=e30%3D

1. Critically analyze the financial condition of Bon-Ton by using ratio analysis.

EXHIBIT 1: BONTON-STOCK PRICE CHANGES 11,554,096 02/28/2017 13,321,443 03131/2017 4.125.950 72 SOS 10.31.2017 42,119 20 8936071 37 4,432505 5,711,155 522SOS 3.900 10 .2015 3.15001 2,591,712 2.6800 2.1000 17,5 ,682 1.7000 6,535,216 1.000 2,153,779 S.,231 1,651,298 1.510 4100 003016 1 1.769,216 2016 1 .47 1.968,047 EXHIBIT 2: BON-TON-CONSOLIDATED ANNUAL INCOME STATEMENT (IN USS MILLIONS) 2013 2014 02-Feb2013 01-Feb2014 2015 31-Jan2015 2016 30-Jan2016 2017 28-Jan2017 Period End Date Net Sales 2.770.1 2,717.7 2,600.6 2.919.4 59.4 Other Income 64.0 2.756.21 66.7 2,822.9 71.8 Total Revenue 2,978.8 2,834.1 2,789.51 2,674.4 1.873.91 1,768.7 1.677.7 Costs of Merchandise Sold Gross Profit 1,773.0 1,049.9 1.775.7 1,0138 1,104.9 1,065.4 764.2 806.8 129.3 771.1 128.3 771.4 135.6 90.1 Selling, General, and Administrative Advertising Depreciation and Amortization Amortization of Lease Related Interests Termination Benefits and Other Closing Cost Gain on Insurance Recovery 0.0 0.0 00 Impairment Charges 996.0 1,003,8 984.1 Total Operating Expense Operating Income 1,034.9 70.0 993.3 56. 6 10.0 (83.0) 168.8) (62.0) 63.0) (67.1) 6.2 8.51 02 02 OS Interest Expense, Net Loss on Extinguishment of Debt Capitalized interest Net Income before Taxes Provision for Income Taxes S Net Income after Taxes/Loss 3.6 15.4 158.9 165.0 (21.3 0.2 121.6 10.1 11.6 13.6 157,1 11.16 .18 Basic EPS Diluted EPS 0.19 10.19 0.36 10.36 12. 903 2.90 3.18 THE TITLE |||| EHT & BONTOH CONSOLIDATED ANNUAL GALOW STATEMENT EXHIBIT 5: BON-TON-CONSOLIDATED QUARTERLY INCOME STATEMENT (IN US$ MILLIONS, EXCEPT PER-SHARE DATA) 2017-07 2017-04 553 2017-10 562 365 197 325 Fiscal year ends in January. Revenue Cost of Revenue Gross Profit Operating Expenses Sales, General, and Administrative Other Operating Expenses Total Operating Expenses Operating Income Other Income (Expense) Income before Income Taxes Provision for Income Taxes Net Income from Continuing Operations Net Income Net Income Available to Common Shareholders EXHIBIT 6: BON-TON-CONSOLIDATED QUARTERLY BALANCE SHEET (IN US$ MILLIONS) 2017-04 2017-07 2017-10 7 714 58 6 3 T 3 43 804 T T T 1 1 1,616 1,616 11,046 571 721 22 .585 ,585 1,056 529 1 1.596 1.596 1.049 547 70 22 639 1.387 426 1.5NT | 1.468 Fiscal year ends in January. Assets Current Assets Cash Cash and Cash Equivalents Total Cash Receivables Inventores Prepaid Expenses Total Current Assets NooCurrent Assets Property, Plant, and Equipment Land Fixtures and Equipment Other Properties Property and Equipment, at Cost Accumulated Depreciation Properly, Plant, and Equipment, Net Intangible Assets Other Long Term Assets Total Non-Current Assets Total Assets Liabilities and Stockholders' Equity Liabilities Current Liabilities Short Term Debt Capital Leases Accounts Payable Taxes Payable Accrued Liabilities Other Current Liabilities Total Current Liabilities Non Current Liabilities Last Debt Capital Lease Other Langerm Liabilities Total Non-Current Liabilities Total Liabilities Stockholders' Equity Common Stock Additional Paid la Capital Retained Earnings Treasury Stock Accumulated Other Comprehensive Income Total Stockholders' Equity Total Liabilities and Stockholders' Equity 777 161178348 179 137 1 49 3463481,091 995 174 1,201 1547 849 130 170 1. 150 1.498 129 177 51 .743 6 1 00 168 il 73 007 072 1.468 1,387 56 22 EXHIBIT 7: BON-TON-CONSOLIDATED QUARTERLY CASH FLOW STATEMENT (IN USS MILLIONS) Fiscal year ends in January 2017-04 2017-07 2017-10 Cash Flows from Operating Activities Depreciation and Amortization Amortization of Debt Discount/Premium and Issuance Costs Investment/Asset Impairment Charges Deferred Income Taxes Stock Based Compensation Inventory 1193 Prepaid Expenses 0 Accounts Payable Accrued Liabilities Other Working Capital Other Non-Sash. Items Net Cash Provided by Operating Activities Cash Flows from Investing Activities Investments in Property, Plant, and Equipment 111 Property, Plant, and Equipment Reductions 21 Net Cash Used for Investing Activities 110 10 Cash Flows from Financing Activities Long-Term Debt Issued Long-Term Debt Repayment Other Financing Activities Net Cash Provided by (Used for) Financing Activities Net Change in Cash Cash at Beginning of Period Cash at End of Period Free Cash Flow Operating Cash Flow i31 Capital Expenditure i10 Free Cash Flow 1186 110 106 1157 1977 1172 EXHIBIT: BON-TON-CONSOLIDATED QUARTERLY BALANCE SHEET IN USS MILLIONS) F ILTE FEEHELPEN EXHIBIT 9: Z-SCORE FORMULA FOR NON-MANUFACTURING FIRMS X1 = (Current Assets Current Liabilities) - Total Assets X2 =Retained Earnings - Total Assets X = Earnings before Interest and Taxes - Total Assets X4 = Book Value of Equity - Total Liabilities Z-Score Bankruptcy Model: Z=6.56(X1) + 3.26(X2)+6.72(X3) + 1.05(X4) Zones of Discrimination: Z > 2.9 = Safe Zone; 1.23 2.9 = Safe Zone; 1.23