Under the division of work tab, I am assigned to group member 3. I have completed the first requirement but can't seem to figure out cash flow analysis and dividends and EPS. PLEASE HELP!! On a time crunch and must travel tonight :(

ACG2021 Fall 2015 Comprehensive Financial Statement Analysis Project Group Members Last Name First Name 100% 100% 100% The objective of this exercise is to develop your ability to perform analysis of the financial information included in financial statements. Instructions: You will need the annual report for Kohl's Corporation for fiscal years 2014 and 2013. They will be provided to you in pdf format. Note that Kohl's fiscal year is referenced one year back, so, for example, the 2014 fiscal year relates to the fiscal year which ended on January 31, 2015 and the 2013 fiscal year relates to the year which ended February 1, 2014. Requirement 1: Basic Questions Answer the questions for the fiscal 2014 year in the shaded input box. The location (source) where you can find the answer is provided for you above the shaded input box. Use only that source to answer the question. The Index on the second page of the annual report PDF file gives you a table of contents which allows you to quickly find the sources of the information. Requirement 2 - 6: Ratio and Financial Analysis For the ratios in requirements 2 and 3, provide the formula of the ratio, the amounts used to calculate the ratio and what the ratio measures. Enter your answers in the shaded input boxes. The first one (a.) was completed as an illustration. The ratio formulas are listed in pages 775 - 777 in chapter 13 of your textbook. I have added the number of the ratio listed in pages 775 - 777 to each ratio so that you know exactly how to calculate them. When calculating the ratios, only use the amounts included in the audited financial statements (Item 8. Financial Statements and Supplementary Data); do not just enter those that may be shown in other sections of the annual report. All other sections of the annual report except for the financial statements are not audited and as such the preparer can calculate any other ratios or financial indicators are they wish, not necessarily as the textbook prescribes. If you pick up amounts in other sections you risk getting the question wrong. Since the fiscal 2014 financial statements are comparative, they include info for both fiscal years 2014 and 2013. Use those financial statements to answer the questions about 2013 as well. However, some ratios for the 2013 year will require you go to back an additional year because some of the 2013 ratios use averages which are calculated using the 2013 + 2012 balances. For example, the inventory turnover for 2013 uses average inventory calculated by using the 2013 ending inventory balance + the 2013 beginning inventory balance (which is the ending balance in 2012). You need to obtain the fiscal 2012 ending inventory balance included in the 2012 financial statements which have been provided to you. For ratios that include averages, use a simple average calculation (beginning + ending balance / 2). Other: Several questions have multiple parts. Make sure you answer every part in order to receive full credit. Please do not add columns or rows to this file. I will be using this file to grade and my grading template is in this same format. The points assigned to each question are included in the boxes highlighted in pink on the right-hand side of the question. There are 141 points which is equivalent to 100%. Requirement 1 Answer BASIC INFORMATION about company operations and financial results for the 2014 fiscal year ending January 31, 2015. NOTE: Use amounts found in the "Source" only to answer these questions. Points a. As of January 31, 2015, how many stores did Kohl's operate and in how many states? Source: Item 8. Notes to Consolidated Financial Statements: Note #1 1 b. When does the fiscal year end each year? How many weeks did fiscal year 2014 have? How about 2013 and 2012? Source: Item 8. Notes to Consolidated Financial Statements: Note #1 1 c. Does Kohl's report a multi-step or single-step income statement? How do you know? Source: Item 8. Consolidated Statements of Income 3 d. What is Kohl's largest asset? Largest liability? What is the amount of each? Source: Item 8. Consolidated Balance Sheets 2 e. How many shares of common stock are Issued? Outstanding? Source: Item 8. Consolidated Balance Sheets 2 f. How many shares of treasury stock did Kohl's purchase during the year? Source: Item 8. Consolidated Statements of Changes in Shareholders' Equity 2 g. How much was dividends declared and paid per share? Source: Item 8. Consolidated Statements of Income 2 h. When does Kohl's record revenue sold at the stores? What about online sales shipped to customers? Source: Item 8. Notes to Consolidated Financial Statements: Note #1 1 i. What method does Kohl's use to value its inventory? Source: Item 8. Notes to Consolidated Financial Statements: Note #1 1 j. What method does Kohl's use to depreciate its property and equipment? Source: Item 8. Notes to Consolidated Financial Statements: Note #1 1 k. What percentage of Kohl's total property and equipment are depreciated at year-end? Source: Item 8. Notes to Consolidated Financial Statements: Note #1 2 l. What items are recorded as cash equivalents? Source: Item 8. Notes to Consolidated Financial Statements: Note #1 1 m. Kohl's has receivables from credit card transactions at fiscal year-end and yet there is no Accounts Receivable classification on the balance sheet. In what balance sheet line are those receivables included and under what conditions? Source: Item 8. Notes to Consolidated Financial Statements: Note #1 2 n. What types of Other Comprehensive Income items does Kohl's have? Source: Item 8. Consolidated Statements of Comprehensive Income 2 o. Was Kohl's debt issued at a discount or premium in the aggregate? How do you know? Source: Item 8. Notes to Consolidated Financial Statements: Note #2 Kohl's debt was issued at a discount of (7) Million and 99.75%. 2 p. What type of items are included in the Various Liabilities to Customers? Why are they classified as liabilities? Source: Notes to Consolidated Financial Statements: Note #1 Various liabilities include current liabilities such as accounts payable, accrued liabilities, income tax payable, and current portion of capital lease and financing obligations. Liabilites also include long-term debt and deferred income taxes. Accrued liabilities include Gift cards and merchandise return cards, payroll, and credit card liabilities. They are classified as liabilities because they are business obligations given by the company and not earned, which must be reported according to GAAP. 2 q. Using a site such as www.hoovers.com or www.finance.yahoo.com, research the discount variety store industry. List three competitors of Kohl's Corporation. Source: Type source here 2 Kohl's has several competitors that target discount minded consumers. Some examples of these competitors are J.C. Penney, Target Corporation, Ross, and Marshall's. r. List three Kohl's brands. Source: Item1. Business 1 Kohl's itself is a company that sells "moderately-priced private label, exclusive and national brand apparel, footwear, accessories, beauty and home products." Though Kohl's doesn't sell a self-named brand of clothing, Kohl's continues to gain momentum with companies like Fitbit, IZOD, Juicy Couture, Nespresso, and Puma. As the consumer needs shift, Kohl's provides the right brands and channels to exploit that need. s. Does Kohl's have any business relations with foreign entities such as suppliers or customers? Source: Item1. Business 2 Kohl's absolutely has business relations with foreign entities. As stated earlier, Kohl's is company that sells other brand names at discount prices. Companies like Apt. 9, Croft & Barrow, Sonoma Life + Style, and Food Network are all examples of suppliers that Kohl's must keep good business relations with in order to sell their products. t. Describe three risk factors that Kohl's faces. Source: Item 1A. Risk Factors. Decline in general economic conditions, consumer spending levels, and other conditions could lead to reduced consumer demand. These declines cause a shift in consumer spending habits, which are affected by many factors including levels of employment, wage rates, prevailing interest rates, housing costs, energy and fuel costs, income tax rates and policies, consumer confidence, consumer perception of economic conditions, and disposable income. Kohl'a may also be unable to source merchandise in a timely and cost-effective manner. Kohl's could also suffer from ineffective marketing which could negatively affect the company's profitability and sales. 1 u. What was the cause of the increase in average selling price per unit? What was the effect of higher selling prices on the number of units sold? Source: Item 7. Management's Discussion and Analysis: Results of Operations. 3 The cause of the increase in selling price per unit was primarily due to increases in "national brand merchandise penetration." The effect of higher selling prices showed in the units per transaction category, which decreased as customers purchased fewer items in response to the higher prices, evening the field out more or less. v. Did capital expenditures increase or decrease from prior year? What is the explanation for the change? Source: Item 7. Management's Discussion and Analysis: Liquidity and Capital Resources 3 Capital expenditures increased by $39 Million from 2013 to $682 Million in 2014. The increase in spending is primarily due to the expansion of a corporate campus, increased IT spending, and the purchase and build out of a call center in Texas. The increase is in Capital expenditures is expected to grow to approximately $800 Million as Kohl's continues to expand. 39 KOHLS 2014 Fiscal Year as of January 31, 2015 Ratio (Refer to pgs 775 - 777 for ratio formula) Calculation of Ratio Show work KOHLS 2013 Fiscal Year as of February 1, 2014 Calculation of Ratio Show work Ratio Ratio Points Requirement 2 Evaluate PROFITABILITY. Using information you have learned in the text and elsewhere, evaluate Kohl's profitability for 2014 compared with 2013. In your analysis, you should compute the following ratios and then comment on what those ratios indicate. NOTE: Use amounts in the audited financial statements only to calculate these ratios (Item 8. of annual report). a. Rate of return on sales #13 Ratio: Net income / Net sales 4.6% $ $ 867 19,023 4.7% $ $ 889 19,031 Did the ratio increase or decrease? Is that positive or negative? Why?