What is the financial condition for Bon-Ton based on ratio analysis use the following ratios to evaluate its performance. What recommendations would you give to the company provide 3. What are the following ratios?

Besides Bon-Ton the other companies are (1) Dillard's Inc (2) KOHL's Corp (3) Macy's Inc (4) Nordstrom Inc (5) Amazon

Dillards Inc.

KOHLs Corp.

Macys Inc.

Nordstrom Inc.

Amazon

1. Current ratio

2. Quick ratio

3. Liabilities to Equity

4. Solvency = Total Liabilties/ Total Stockholder's Equity

5. Profit Margin

6. Asset Turnover

7. Financial Leverage

8. ROE

B) Help me fill these two tables:

Revenues

COGS

Gross Profit

SG&A Expenses

Net Income

Balance Sheet - Common Size

Cash & Market Securities

Receivables, net

Inventories

Total Current Assets

Fixed Assets, net

Total Assets

Total Current Liabilities

Total Liabilities

Total Equity

Financial Information:

Page 10 9B19B005 Page 11 9B19B005 EXHIBIT 3: BON-TON-CONSOLIDATED ANNUAL BALANCE SHEET (IN US$ MILLIONS) EXHIBIT 3 (CONTINUED) | 2013 02-Feb- 2013 2014 01-Feb- 2014 2015 31-Jan- 2015 2016 30-Jan- 2016 2017 28-Jan- 2017 2013 492.7 2014 413.3 2015 406.5 2016 344.1 2017 368.8 768.9 804.4 851.0 856.01 848.8 7.1 709.7 7.9 758.4 36.0 34.6 836.9 396 735.0 1 59.7 33.7 837.1 1967 711.7 724.51 60.5 68.3 36.7 30.3 815.8 829.7 52.5 821.3 83.6 126.0 0.0 1,523.6 49.0 853.3 51.5 131.1 36.7 793.1 45. 0 896. 0 0.0 193.9 8.7 1,505,1 126.7 982.7 0.0 179.1 9.8 1,515.7 133.9 982.6 0.0 166.0 0.0 104 118.4 714.4 610.2 1,449.3 1,527.8 118.4 690.3 579.4 69.3 120.7 720.3 650.9 60.5 77.5 677.0 683.8 148.8 Period End Date Assets Current Assets Cash and Cash Equivalents Merchandise Inventories Other Receivables Prepaid Expenses Total Current Assets Fixed Assets Land and Improvements Buildings Furniture and Equipment Capital Lease Accumulated Depreciation and Amortization Deferred Taxes Lease-Related Interests Customer Lists and Relationships Accumulated Amortization and Other Intangibles Other Long-Term Assets Trade Name, Net Brands/Patents, Net Total Assets 77.5 673.8 693.8 164.1 Total Current Liabilities Long-Term Debt, Less Current Maturities Long-Term Finance Lease and Hire Purchase Agreement Total Long-Term Debt Employee Defined Benefit Plans Other Long-Term Liabilities, Other Deferred Income Taxes Total Liabilities Shareholders' Equity Common Stock Treasury Stock Additional Paid-In Capital Accumulated Other Comprehensive LOSS Accumulated Deficit Total Equity Total Liabilities and Shareholders' Equity 0.19 0.18 0.19 62.1 0.19 0.19 -1.4 158.7 -1.4 -951.8 -1,024.4 160.8 161.4 164.4 166.9 0.0 -804.6 15.0 94.6 22.9 -865.1 15. 8 91.3 22.9 -910.5 00 0.0 812 22.9 73.0 70.5 22.6 -73.2 26.3 110.6 -50.4 18.8 128.0 -80.4 7.9 -76.1 -52.2 -72.9 -115.6 -22.8 22.6 -622 87.6 34.9 -57.6 -62.1 65.7 1,634.2 1,577.2 1,592.7 1,550.6 1,505.1 17.4 17.4 360 18.9 40.3 10.4 1,634.2 40.3 10.3 1,577.2 40.2 10.3 1,592.7 38.4 10.3 1,550. 6 Source: Created by the case authors with information from The Bon-Ton Stores Inc. BONTO: Balance Sheet," Morningstar accessed February 23, 2018, http://financials.morningstar.com/balance-sheet/bs.html?i-BONTO®ion=usa&culture-en- US&platform sal, and Thomson Reuters Eikon. 9.7 1 ,505.1 185.9 Liabilities Current Liabilities Accounts Payable Other Accrued Expenses Accrued Payroll and Benefits Current Maturities of Long-Term Debt Current Maturities of Capital Lease Deferred Taxes Income Taxes Payable Customer Liabilities 162.8 69.2 28.5 0.0 193.9 130.5 32.4 75.9 3.9 20.3 35.7 0.0 208.9 77.0 28.8 6.8 4.0 0.0 35.1 0.0 200.5 119.7 28.3 7.4 3.8 22.7 30.9 0.0 5.4 0.0 32.8 45.4 0.0 34.5 46.3 EXHIBIT 4: BON-TON-CONSOLIDATED ANNUAL CASH FLOW STATEMENT (IN USS MILLIONS) 2015-01 2016-01 2017-01 7 EXHIBIT 5: BON-TON-CONSOLIDATED QUARTERLY INCOME STATEMENT (IN USS MILLIONS, EXCEPT PER-SHARE DATA) Fiscal year ends in January 2017-04 2017-07 2017-10 Revenue 553 525 562 Cast of Revenue 364 325 365 Gross Profit 199 200 197 Operating Expenses Sales, General and Administrative 205 191 203 Other Operating Expenses 23 24 21 Total Operating Expenses 228 215 223 Operating Income -39 -15 - 26 Other Income (Expense) -19 -18 -19 Income before Income Taxes 57 -33 -45 Provision for Income Taxes 0 0 0 Net Income from Continuing Operations -57 -33 -45 Net Income Net Income Available to Common Shareholders -57 -33 -45 -17 4 6 -41 -36 -71 21 1 -12 -20 -6 47 -15 -47 1 8 -57 59 -91 Source: Excerpted from "The Bon Ton Soresine BONTO nome S a nt Morringstar accessed February 23, 2018 htpainancials.momingstar.com income-walemen t OPODOODOUDOtrosen-US platformsal Fiscal year and in January Cash Flows from Operating Acties Depreciation and Amortization Amortization of Debt Discount Premium and issuance Costs Investment Asset Impairment Charges Deferred Income Taxes Stock Based Compensation Inventory Prepaid Expenses Accounts Payable Accrued Liabilities Income Taxes Payable Other Working Capital Other Non-Cash Items Net Cash Provided by Operating Activities Cash Flows from Investing Activities Investments in Property, Plant, and Equipment Property, Plant, and Equipment Reductions Other Investing Charges Net Cash Used for Investing Activities Cash Flows from Financing Activities Short-Term Borrowing Long-Term Debt issued Long-Term Debt Repayment Cash Dividends Paid 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 Capital Expenditure Free Cash Flow -85 8 5 -55 0 5 -85 2 -55 770 -728 -4 909 -915 -41 -778 40 -22 -5 Page 14 9B19B005 Page 15 9B19B005 EXHIBIT 6: BON-TON-CONSOLIDATED QUARTERLY BALANCE SHEET (IN US$ MILLIONS) Fiscal year ends in January 2017-04 2017-07 2017-10 Assets Current Assets Cash Cash and Cash Equivalents Total Cash Receivables Inventories 714 852 Prepaid Expenses Total Current Assets 747 Non-Current Assets Property, Plant, and Equipment OON 658 83 804 961 Land -37 EXHIBIT 7: BON-TON-CONSOLIDATED QUARTERLY CASH FLOW STATEMENT (IN US$ MILLIONS) Fiscal year ends in January. 2017-04 2017-07 2017-10 Cash Flows from Operating Activities Depreciation and Amortization 22 23 Amortization Of Debt Discount/Premium and Issuance Costs 3 2 Investment/Asset Impairment Charges Deferred Income Taxes Stock Based Compensation Inventory Prepaid Expenses 16 Accounts Payable -29 22 Accrued Liabilities -16 Other Working Capital Other Non-Cash Items -55 Net Cash Provided by Operating Activities Cash Flows from Investing Activities Investments in Property. Plant, and Equipment Property. Plant, and Equipment Reductions 21 Net Cash Used for Investing Activities -10 10 Cash Flows from Financing Activities Long-Term Debt Issued 170 106 281 Long-Term Debt Repayment Other Financing Activities Net Cash Provided by (Used for) Financing Activities 41 Net Change in Cash Cash at Beginning of Period Cash at End of Period Free Cash Flow Operating Cash Flow -31 Capital Expenditure -101 -11 Free Cash Flow -41 | 31 | -186 22 1,587 161 Fixtures and Equipment Other Properties 1.616 1.596 1.585 Property and Equipment, at Cost 1,616 1.596 1.585 Accumulated Depreciation -1.046 -1.049 -1.056 Property. Plant, and Equipment, Net 571 547 529 Intangible Assets 69 Other Long-Term Assets Total Non-Current Assets 665 639 626 Total Assets 1,468 1,387 Liabilities and Stockholders' Equity Liabilities Current Liabilities Short-Term Debt 665 Capital Leases Accounts Payable 178 248 Taxes Pavable Accrued Liabilities 137 149 Other Current Liabilities 22 Total Current Liabilities 346 348 1,091 Non-Current Liabilities Long-Term Debt 895 849 345 Capital Leases 132 1301 129 Other Long-Term Liabilities 170 177 Total Non-Current Liabilities 1.201 1.150 651 Total Liabilities 1,547 1.498 1,743 Stockholders' Equity Common Stock 0 Additional Paid-In Capital 167 Retained Earnings -207 -252 Treasury Stock Accumulated Other Comprehensive Income -71 -71 Total Stockholders' Equity -1111 -156 Total Liabilities and Stockholders' Equity 1,468 1,387 1,587 Source: Excerpted from "The Bon-Ton Stores Inc. BONTQ: Balance Sheet' Morningstar, accessed February 23, 2018 httpTinancials.momingstar.combalance-sheevbs.html?t-BONTO®ion=usa culture=en-US&platform=sal 179 7 42 -172 168 168 - 173 Source: Excerpted from The Bon-Ton Stores Inc. Cash Flow Statement," Morningstar, accessed February 23, 2018 http://financials.momingstar.com/cash-flow/cf.html?t-BONTO®ion=usa&culture=en-US&platform-sal. -72 -79 Page 10 9B19B005 Page 11 9B19B005 EXHIBIT 3: BON-TON-CONSOLIDATED ANNUAL BALANCE SHEET (IN US$ MILLIONS) EXHIBIT 3 (CONTINUED) | 2013 02-Feb- 2013 2014 01-Feb- 2014 2015 31-Jan- 2015 2016 30-Jan- 2016 2017 28-Jan- 2017 2013 492.7 2014 413.3 2015 406.5 2016 344.1 2017 368.8 768.9 804.4 851.0 856.01 848.8 7.1 709.7 7.9 758.4 36.0 34.6 836.9 396 735.0 1 59.7 33.7 837.1 1967 711.7 724.51 60.5 68.3 36.7 30.3 815.8 829.7 52.5 821.3 83.6 126.0 0.0 1,523.6 49.0 853.3 51.5 131.1 36.7 793.1 45. 0 896. 0 0.0 193.9 8.7 1,505,1 126.7 982.7 0.0 179.1 9.8 1,515.7 133.9 982.6 0.0 166.0 0.0 104 118.4 714.4 610.2 1,449.3 1,527.8 118.4 690.3 579.4 69.3 120.7 720.3 650.9 60.5 77.5 677.0 683.8 148.8 Period End Date Assets Current Assets Cash and Cash Equivalents Merchandise Inventories Other Receivables Prepaid Expenses Total Current Assets Fixed Assets Land and Improvements Buildings Furniture and Equipment Capital Lease Accumulated Depreciation and Amortization Deferred Taxes Lease-Related Interests Customer Lists and Relationships Accumulated Amortization and Other Intangibles Other Long-Term Assets Trade Name, Net Brands/Patents, Net Total Assets 77.5 673.8 693.8 164.1 Total Current Liabilities Long-Term Debt, Less Current Maturities Long-Term Finance Lease and Hire Purchase Agreement Total Long-Term Debt Employee Defined Benefit Plans Other Long-Term Liabilities, Other Deferred Income Taxes Total Liabilities Shareholders' Equity Common Stock Treasury Stock Additional Paid-In Capital Accumulated Other Comprehensive LOSS Accumulated Deficit Total Equity Total Liabilities and Shareholders' Equity 0.19 0.18 0.19 62.1 0.19 0.19 -1.4 158.7 -1.4 -951.8 -1,024.4 160.8 161.4 164.4 166.9 0.0 -804.6 15.0 94.6 22.9 -865.1 15. 8 91.3 22.9 -910.5 00 0.0 812 22.9 73.0 70.5 22.6 -73.2 26.3 110.6 -50.4 18.8 128.0 -80.4 7.9 -76.1 -52.2 -72.9 -115.6 -22.8 22.6 -622 87.6 34.9 -57.6 -62.1 65.7 1,634.2 1,577.2 1,592.7 1,550.6 1,505.1 17.4 17.4 360 18.9 40.3 10.4 1,634.2 40.3 10.3 1,577.2 40.2 10.3 1,592.7 38.4 10.3 1,550. 6 Source: Created by the case authors with information from The Bon-Ton Stores Inc. BONTO: Balance Sheet," Morningstar accessed February 23, 2018, http://financials.morningstar.com/balance-sheet/bs.html?i-BONTO®ion=usa&culture-en- US&platform sal, and Thomson Reuters Eikon. 9.7 1 ,505.1 185.9 Liabilities Current Liabilities Accounts Payable Other Accrued Expenses Accrued Payroll and Benefits Current Maturities of Long-Term Debt Current Maturities of Capital Lease Deferred Taxes Income Taxes Payable Customer Liabilities 162.8 69.2 28.5 0.0 193.9 130.5 32.4 75.9 3.9 20.3 35.7 0.0 208.9 77.0 28.8 6.8 4.0 0.0 35.1 0.0 200.5 119.7 28.3 7.4 3.8 22.7 30.9 0.0 5.4 0.0 32.8 45.4 0.0 34.5 46.3 EXHIBIT 4: BON-TON-CONSOLIDATED ANNUAL CASH FLOW STATEMENT (IN USS MILLIONS) 2015-01 2016-01 2017-01 7 EXHIBIT 5: BON-TON-CONSOLIDATED QUARTERLY INCOME STATEMENT (IN USS MILLIONS, EXCEPT PER-SHARE DATA) Fiscal year ends in January 2017-04 2017-07 2017-10 Revenue 553 525 562 Cast of Revenue 364 325 365 Gross Profit 199 200 197 Operating Expenses Sales, General and Administrative 205 191 203 Other Operating Expenses 23 24 21 Total Operating Expenses 228 215 223 Operating Income -39 -15 - 26 Other Income (Expense) -19 -18 -19 Income before Income Taxes 57 -33 -45 Provision for Income Taxes 0 0 0 Net Income from Continuing Operations -57 -33 -45 Net Income Net Income Available to Common Shareholders -57 -33 -45 -17 4 6 -41 -36 -71 21 1 -12 -20 -6 47 -15 -47 1 8 -57 59 -91 Source: Excerpted from "The Bon Ton Soresine BONTO nome S a nt Morringstar accessed February 23, 2018 htpainancials.momingstar.com income-walemen t OPODOODOUDOtrosen-US platformsal Fiscal year and in January Cash Flows from Operating Acties Depreciation and Amortization Amortization of Debt Discount Premium and issuance Costs Investment Asset Impairment Charges Deferred Income Taxes Stock Based Compensation Inventory Prepaid Expenses Accounts Payable Accrued Liabilities Income Taxes Payable Other Working Capital Other Non-Cash Items Net Cash Provided by Operating Activities Cash Flows from Investing Activities Investments in Property, Plant, and Equipment Property, Plant, and Equipment Reductions Other Investing Charges Net Cash Used for Investing Activities Cash Flows from Financing Activities Short-Term Borrowing Long-Term Debt issued Long-Term Debt Repayment Cash Dividends Paid 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 Capital Expenditure Free Cash Flow -85 8 5 -55 0 5 -85 2 -55 770 -728 -4 909 -915 -41 -778 40 -22 -5 Page 14 9B19B005 Page 15 9B19B005 EXHIBIT 6: BON-TON-CONSOLIDATED QUARTERLY BALANCE SHEET (IN US$ MILLIONS) Fiscal year ends in January 2017-04 2017-07 2017-10 Assets Current Assets Cash Cash and Cash Equivalents Total Cash Receivables Inventories 714 852 Prepaid Expenses Total Current Assets 747 Non-Current Assets Property, Plant, and Equipment OON 658 83 804 961 Land -37 EXHIBIT 7: BON-TON-CONSOLIDATED QUARTERLY CASH FLOW STATEMENT (IN US$ MILLIONS) Fiscal year ends in January. 2017-04 2017-07 2017-10 Cash Flows from Operating Activities Depreciation and Amortization 22 23 Amortization Of Debt Discount/Premium and Issuance Costs 3 2 Investment/Asset Impairment Charges Deferred Income Taxes Stock Based Compensation Inventory Prepaid Expenses 16 Accounts Payable -29 22 Accrued Liabilities -16 Other Working Capital Other Non-Cash Items -55 Net Cash Provided by Operating Activities Cash Flows from Investing Activities Investments in Property. Plant, and Equipment Property. Plant, and Equipment Reductions 21 Net Cash Used for Investing Activities -10 10 Cash Flows from Financing Activities Long-Term Debt Issued 170 106 281 Long-Term Debt Repayment Other Financing Activities Net Cash Provided by (Used for) Financing Activities 41 Net Change in Cash Cash at Beginning of Period Cash at End of Period Free Cash Flow Operating Cash Flow -31 Capital Expenditure -101 -11 Free Cash Flow -41 | 31 | -186 22 1,587 161 Fixtures and Equipment Other Properties 1.616 1.596 1.585 Property and Equipment, at Cost 1,616 1.596 1.585 Accumulated Depreciation -1.046 -1.049 -1.056 Property. Plant, and Equipment, Net 571 547 529 Intangible Assets 69 Other Long-Term Assets Total Non-Current Assets 665 639 626 Total Assets 1,468 1,387 Liabilities and Stockholders' Equity Liabilities Current Liabilities Short-Term Debt 665 Capital Leases Accounts Payable 178 248 Taxes Pavable Accrued Liabilities 137 149 Other Current Liabilities 22 Total Current Liabilities 346 348 1,091 Non-Current Liabilities Long-Term Debt 895 849 345 Capital Leases 132 1301 129 Other Long-Term Liabilities 170 177 Total Non-Current Liabilities 1.201 1.150 651 Total Liabilities 1,547 1.498 1,743 Stockholders' Equity Common Stock 0 Additional Paid-In Capital 167 Retained Earnings -207 -252 Treasury Stock Accumulated Other Comprehensive Income -71 -71 Total Stockholders' Equity -1111 -156 Total Liabilities and Stockholders' Equity 1,468 1,387 1,587 Source: Excerpted from "The Bon-Ton Stores Inc. BONTQ: Balance Sheet' Morningstar, accessed February 23, 2018 httpTinancials.momingstar.combalance-sheevbs.html?t-BONTO®ion=usa culture=en-US&platform=sal 179 7 42 -172 168 168 - 173 Source: Excerpted from The Bon-Ton Stores Inc. Cash Flow Statement," Morningstar, accessed February 23, 2018 http://financials.momingstar.com/cash-flow/cf.html?t-BONTO®ion=usa&culture=en-US&platform-sal. -72 -79