The Percentage of Sales Method is a Financial Forecasting approach which is based on the premise that most Balance Sheet and Income Statement Accounts vary with sales. Therefore, the key driver of this method is the Sales Forecast and based upon this, Pro-Forma Financial Statements (i.e., forecasted) can be constructed and the firms needs for external financing can be identified. Please compute the percentage of sales method for JcPenny for 10 years of sales.

10 Years of sales

2006	2007	2008	2009	2010	2011	2012	2013	2014	2015	2016
19, 903	19,860	18,486	17,556	17,759	17, 260	12,985	12,990	11,860	12,260	12,630

Income statement

Revenue	1/30/2016	1/31/2015	2/1/2014
Total Revenue	12,625,000	12,257,000	11,859,000
Cost of Revenue	8,074,000	7,996,000	8,367,000
Gross Profit	4,551,000	4,261,000	3,492,000
Operating Expenses
Research Development	-	-	-
Selling General and Administrative	3,940,000	3,797,000	3,918,000
Non Recurring	84,000	87,000	215,000
Others	616,000	631,000	601,000
Total Operating Expenses	-	-	-
Operating Income or Loss	-89,000	-254,000	-1,242,000
Income from Continuing Operations
Total Other Income/Expenses Net	-10,000	-34,000	-114,000
Earnings Before Interest and Taxes	-99,000	-288,000	-1,356,000
Interest Expense	405,000	406,000	352,000
Income Before Tax	-504,000	-694,000	-1,708,000
Income Tax Expense	9,000	23,000	-430,000
Minority Interest	-	-	-
Net Income From Continuing Ops	-523,000	-751,000	-1,392,000
Non-recurring Events
Discontinued Operations	-	-	-
Extraordinary Items	-	-	-
Effect Of Accounting Changes	-	-	-
Other Items	-	-	-
Net Income
Net Income	-513,000	-717,000	-1,278,000
Preferred Stock And Other Adjustments	-	-	-
Net Income Applicable To Common Shares	-513,000	-717,000	-1,278,000

Period Ending	1/30/2016	1/31/2015	2/1/2014
Current Assets
Cash And Cash Equivalents	119,000	119,000	113,000
Short Term Investments	781,000	1,199,000	1,402,000
Net Receivables	231,000	172,000	193,000
Inventory	2,721,000	2,652,000	2,935,000
Other Current Assets	166,000	189,000	190,000
Total Current Assets	4,018,000	4,331,000	4,833,000
Long Term Investments	-	-	-
Property Plant and Equipment	4,816,000	5,148,000	5,619,000
Goodwill	-	-	-
Intangible Assets	-	-	-
Accumulated Amortization	-	-	-
Other Assets	608,000	830,000	1,349,000
Deferred Long Term Asset Charges	-	-	-
Total Assets	9,442,000	10,309,000	11,801,000
Current Liabilities
Accounts Payable	2,285,000	2,100,000	2,146,000
Short/Current Long Term Debt	127,000	56,000	700,000
Other Current Liabilities	-	-	-
Total Current Liabilities	2,412,000	2,156,000	2,846,000
Long Term Debt	4,678,000	5,265,000	4,901,000
Other Liabilities	618,000	611,000	632,000
Deferred Long Term Liability Charges	425,000	363,000	335,000
Minority Interest	-	-	-
Negative Goodwill	-	-	-
Total Liabilities	8,133,000	8,395,000	8,714,000
Stockholders' Equity
Misc. Stocks Options Warrants	-	-	-
Redeemable Preferred Stock	-	-	-
Preferred Stock	-	-	-
Common Stock	153,000	152,000	152,000
Retained Earnings	-3,007,000	-2,494,000	-1,008,000
Treasury Stock	-	-	-
Capital Surplus	4,654,000	4,606,000	4,571,000
Other Stockholder Equity	-491,000	-350,000	-628,000
Total Stockholder Equity	1,309,000	1,914,000	3,087,000
Net Tangible Assets	1,309,000	1,914,000	3,087,000