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Q1 Use the information below for J.C. Penney and Intel to answer the following questions. FYE 2010 ($ in millions) Sales revenue Expense Net income

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Q1 Use the information below for J.C. Penney and Intel to answer the following questions. FYE 2010 ($ in millions) Sales revenue Expense Net income ROS J.C. Penney Corp (JCP) $ 17,759 17,370 $ 389 Intel (INTC) 43,623 32,159 11,464 26% $ 2% a. Revenue for INTC is more than (2 times / 10 times) greater than revenue for JCP, whereas net income for INTC is approximately (2 times / 10 times / 30 times) greater than net income for JCP. b. Examine the relationship between Sales Revenue and Net Income. 1. (JCP / INTC) corporation is generating the most net income from each dollar of revenue. 2. This relationship is measured by the (ROS / Asset Turnover / ROA) ratio. 3. Calculate ROS and record in the space provided above. 4. ROS of (JCP / INTC) is clearly much higher, revealing that (JCP / INTC) has a greater ability to translate revenue into profits; keep expenses under control. But does the higher ROS mean that one company is better than the other company? (Yes / No), because these companies are from different industries, and RoS averages (are the same differ) among industries

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