The 2021 financial statements for Kohl's Corporation are provided for you. The Balance Sheet includes data for 2020. The Statement of Operations, Statements of Changes in Shareholders' Equity, and Statements of Cash Flows include three years of data (2021, 2020, and 2019). Answer the following questions about Kohl's Corporation. SHOW YOUR WORK FOR ALL CALCULATIONS! 1. Calculate the current ratio for Kohl's for 2021 and 2020. Discuss what the ratio means and what the change indicates for Kohl's. 2. Calculate the debt/equity ratio for Kohl's for 2021 and 2020. What does the ratio suggests about Kohl's solvency. 3. The Balance Sheet indicates that Kohl's has $1,270 million in accrued liabilities at January 30, 2021. What specific type of liabilities might be included in accrued liabilities (list 3 specific types). 4. Calculate the inventory turnover for 2020. What does this number mean? 5. Based on the information provided in shareholders' equity, what is the likely par value of the stock? 6. Calculate Kohl's gross profit for 2021 and 2020. Did gross profit improve or decline between the two years? What is a possible explanation for the change? 7. What is the three-year trend for Koh's net income? Provide a graphical representation that highlights the change over time. (1 recommend completing this in Excel). 8. In general, companies do not like to reduce their dividends. Discuss why companies don't usually decrease their dividends and why Kohl's might have done so in 2020. 9. Why did Kohl's add back depreciation and amortization expense on the Statements of Cash Flows? 10. Why is the gain on real estate sales added back in the operating section of the balance sheet? Why are the proceeds from the sale of real estate added in the investing section? 11. Financial analysis of one ratio at a point in time provides little information. Explain two ways to provide a context for ratio analysis. BONUS: Utilize the information provided in the Balance Sheet, Income Statement, and Statement of Cash Flows to estimate the amount of inventory PURCHASED by Kohl's from February 1, 2020 to January 30, 2021. I strongly recommend that you use t-accounts to think about this answer. KOHL'S CORPORATION CONSOLIDATED BALANCE SHEETS January 30, 2021 February 1 2020 Dollars in Millions Assets Current assets Cash and cash equivalents Merchandise inventories Other Total current assets Property and equipment, net Operating leases Other assets Total assets 2,271 2.590 974 5,835 6,609 2,398 415 15,337 723 3.537 389 4.649 7 352 2391 163 14.555 1,476S 1,270 1,206 1.281 Liabilities and Shareholders' Equity Current liabilities Accounts payable Accrued liabilities Current portion of Finance lease and financing obligations Operating leases Total current liabilities Long-term debt Finance loase and financing obligations Operating leases Deferred income taxes Other long term liabilities Shareholders equity Common stock 377 and 375 million shares issued Paid-in capital Treasury stock, at con, 219 and 219 minon shares Retained ning Total shareholders equity Total abilities and shareholders equity See accompanying Noten to Comolidated Financial Statements 115 161 3,022 2,451 1,387 2,625 302 354 124 158 2,789 1.85 1,367 2,619 200 234 4 3,319 (11,695) 13,468 5196 15,337 3,272 (11.571) 13.745 5.40 14.555 KOHL'S CORPORATION CONSOLIDATED STATEMENTS OF OPERATIONS 2030 2019 2018 15,031 $ 924 15,955 10,360 18.8855 1,089 19.974 12.140 19.107 1.082 20,229 12,199 5.705 917 113 5,601 064 104 (Dollars in Millions, Except per Share Data Net sales Other revence Total revenue Cost of merchandise sold Operating expenses Selling general, and administrative Depreciation and amortization Impairments, store closing, and other costs (Gain) on sale of real estate Operating (oss) income interest expense net Gain) loss on extinguishment of debt KLOSS) income before income taxes Benefit) provision for income taxes Net (los) income Netloss) income per share Basic Diluted 5,021 874 89 (127) (262) 284 1,099 207 193 901 210 0915 1.361 250 03 1,042 241 201 (546) (383) (163) (1.06) (1.06) 4.395 437 484 See accompanying Notes to Consolidated Financial Statements KOHL'S CORPORATION CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS' EQUITY 2020 2010 2010 Dollar in Millions, Except per Share Data) Common stock Balance, beginning of period Stock-based awards Balance, end of period 3,272 47 3,319 3204 68 3.272 3,078 126 3.204 (11,671) (8) (22) (11,076) (470) (31) 8 (11.571) (10,651) (396) (34) (11,595) (11.070 Pald-in capital Balance, beginning of period Stock-based awards Balance, end of period Treasury stock Balance, beginning of period Treasury stock purchases Stock-based awards Dividends paid Balance, end of period Accumulated other comprehensive (loss) Income (a) Balance beginning of period Other comprehensive income Balance, end of period Retained earnings Balance beginning of period Change in accounting standard (b) Net (los) earnings Dividends paid Balance, ond of period Total shareholders' equity, and of period 13,745 12,999 (163) (114) 13,468 13,395 88 001 (420) 13.745 301 M05) 13.305 5.196 5.450 5427 374 373 375 2 377 374 Common stock Shares, beginning of period Stock-based awards Shares end of period Treasury stock Shares, beginning of period Treasury stock purchases Shares and of period Total shares outstanding, and of period (219) (211) B 210) 156 (205) 10 (211 103 (219) 150 Dividends paid per common share 0.704 21 2014 KOHL'S CORPORATION CONSOLIDATED STATEMENTS OF CASH FLOWS 2018 GAL 801 904 87 (31) 72 64 63 149 150 18 79 106 (84) 32 3.107 (578) Dollars in Millions 2020 2019 Operating activities Net (Loss) Income Adjustments to reconcile net (los) income to net cash provided by operating activities (163) 691 Depreciation and amortization 874 917 Share-based compensation 40 56 Deferred income taxes 18 51 Impairments, store closing and other costs 64 (Gain) on sale of real estate (127) (Gain loss on extinguistimiento debt (9) Non-cash inventory costs 187 Non-cash fease expense Other non-cash expense 22 11 Changes in operating assets and liabilities Merchandise inventories 768 (51) Other current and long-term assets (813) 48 Accounts payable 270 19 Accrued and other long-term liabilities 199 (134) Operating lease liabilities (150) (156) Net cash provided by operating activities 1,338 1.657 Investing activities Acquisition of property and equipment (334) (855) Proceeds from sale of real estate 197 Other 18 Net cash used in investing activities (137) 837) Financing activities Proceeds from issuance of debt 2,097 Deferred financing costs (19) Treasury stock purchases (8) (470) Shares withheld for taxes on vested restricted shares (22) (31) Dividends paid (108) (423) Reduction of long-term borrowing (1.497) (6) Premium paid on redemption of debt Finance lease and financing obligation payments (105) (113) Proceeds from stock option exercises 1 Proceeds from financing obligations 11 Net cash provided by used in financing activities 347 (1.031 Net increase (decrease in cash and cash equivalents 1,548 (211) Cash and cash equivalents at beginning of period 723 934 Cash and cash equivalents at end of period 2.271 723 5 Supplemental Information Interest paid, net of capitalized interest 2545 193 s Income taxes paid 419 172 Property and equipment acquired through Finance lease liable 128 230 Operating tease liabilities 165 100 Financing obligations Ser accompanying Notes to Consolidated Financial Statements 1572) (306) (400) 1943) (46) (120) 38 9 (1.909 (374) 1300 934 202 308 37