# Accounting and Finance: Managerial Use and Analysis Essay examples

1659 Words Oct 1st, 2012 7 Pages
Rahul Balhara
Accounting and Finance: Managerial Use and Analysis MAR12 Sec C
Financial Statement Analysis Project -- A Comparative Analysis of Kohl’s Corporation and J.C. Penney Co MAR12 Sec C
Analysis of Kohl’s Corporation and J.C. Penney Corporation

J.C. Penney was founded by James Cash Penney in 1902. This Plano, Texas based company is presently providing family apparel and footwear, accessories, jewelries, beauty products and home furnishings via 1,100 department stores as of December 7, 2011 in the United States and Puerto
Rico. The company is also taking advantage of technology by making JC
Penney's products available online through its Internet Web Site jcpenney.com. This more than a century old company also
Therefore, Kohl's is more profitable based on this ratio. =
58.14%
Kohl's require to liquidate 40.27% of its assets at their book value to satisfy their obligations while JC
Penney must liquidate 58.14% of its assets at their book value to satisfy their obligations. This ratio tells us that the stockholder's interest is larger at Kohl's compared to JC Penney.
=
3.6
Kohl's ability to pay its obligation is in a better position compared to JC Penney based on this ratio.
Kohl's times-interest earned ratio is significantly higher than JC Penney.
=
48.59%
Not Applicable - Kohl's did not declare and pay dividend on 2010.
=
8%
Kolh's earning for every dollar invested by common stockholders is better by 6 cents as compared to JC
Penney so Kohl's is more profitable based on this ratio. Kohl's has \$915M in free cash flow while JC Penney has -\$96M based on the provided solution but \$158M if based on the computation provided by the annual report. Regardless, Kohl's has the advantage on this
= (\$96,000,000) particular ratio.
= \$158,000,000
=
0.20
Kohl's 66 cents in cash provided by operation in relation to average current liabilities is better than JC
Penney's 20 cents so Kohl's is more liquid based on this liquidity ratio.
=
0.08
Kolh's 31 cents in cash provided by operating

## Related Documents

• ###### Essay Fi 504 Accounting and Finance: Managerial Use

If LBJ Company decided to go public they would have to follow the Sarbanes-Oxley Act of 2002. Under this act LBJ Company would be required to keep an adequate system of internal control. If a company is found to be out of compliance of this law they are subject to fines and possible imprisonment for its officers. LBJ Company would also have to have outside auditors attest to the adequacy of its system. In order to create a good system of control LBJ Company needs to meet 5 primary components. A control…

Words: 667 - Pages: 3
• ###### Essentials of Managerial Finance Essay

Department of Accounting and Finance/COBA Alabama State University FIN 321 Essentials of Managerial Finance Course Syllabus Course: Essentials of Managerial Finance | Instructor: | Course Credit Hours: 3 | Instructor’s Office: | Instructor’s Office Hours: TBA | Instructor’s Email Address: ghuang@alasu.edu | Instructor’s Office Phone: | Prerequisites: All courses in sequence prior to this course including: MAT137 and ACT 215 | COBA Mission Statement The mission of the College…

Words: 3740 - Pages: 15
• ###### Essay Managerial Accounting

Key Figures for the Exercises, Problems and Cases To Accompany Managerial Accounting Creating Value in a Dynamic Business Environment 9th Edition McGraw-Hill/Irwin 2011 by Ronald W. Hilton CHAPTER 1 No key figures. CHAPTER 2 E 2-24 Beginning inventory of finished goods, case I: \$84,000 E 2-25 1. Total compensation: \$720 E 2-26 2. Total overtime premium: \$20 E 2-29 2. Cost of goods sold: \$820,000 E 2-30 (f) \$77,000 (o) \$110 E 2-31 2. Cost per call…

Words: 5370 - Pages: 22
• ###### Chipotle Managerial Accounting Essay

enormously successful publicly traded company with over 1,000 locations in 38 states. Although Steve was first drawn to the business model by its limited cost structure, he aspired to run his business in a sustainable manner. The company uses management accounting to ensure their high standard operating decisions will also provide the company with enough profit to remain competitive and continue to grow. Customer Value Proposition Differentiating themselves from the completion, Chipotle primarily…

Words: 3884 - Pages: 16
• ###### Intermediate Managerial Accounting Essay

BUS 322.D1 – FALL 2012 INTERMEDIATE MANAGERIAL ACCOUNTING Tuesday, 11:30-14:20 (BLU 10021) Instructor Office Phone Email : : : : Tota Panggabean, BSc., MSF., MSEc. WMC 3353 (778)782.3563 tpanggab@sfu.ca Office hours : M 10.00-12.00 W 10.00-14.30 Or by appointment Toan Le WMC 3381 M: 14.00-15.30 Marker : Prerequisites Textbooks (Required) : : BUS 254; 60 credit hours. Cost Management and Control (2008): Custom Publication for Simon Fraser University, McGraw-Hill Ryerson Ltd. ISBN:…

Words: 844 - Pages: 4
• ###### Acct 504 Accounting and Finance, Managerial Use and Analysis Essay

ACCT 504 Accounting and Finance, Managerial Use and Analysis Purchase here https://sellfy.com/p/TvL6/ Product Description WEEK 1Discussion Question, An Overview of Financial Statements WEEK 2 Discussion Question, Accounting Information System and Accrual Accounting Concepts WEEK 3 Case Study 1, The Complete Accounting Cycle, Parkview Landscaping Discussion 1, CVP Analysis Discussion 2, Merchandising Operations and Inventory WEEK 4 Assignment - International Business & Career…

Words: 669 - Pages: 3
• ###### An analysis of skills and knowledge required to undertake degree studies in accounting and finance and follow a future career path in financial accounting

An analysis of skills and knowledge required to undertake degree studies in accounting and finance and follow a future career path in financial accounting This essay will mark out the course of study of accounting and finance and formal assess the knowledge and skills that are needed for a future career path in financial accounting. Students that study accounting and finance often set goals to progress into accounting at a bank or at an accounting firm. So it will be advantageous for the students…

Words: 1213 - Pages: 5
• ###### Essay Financial Accounting And Managerial Accounting

Financial Accounting and Managerial Accounting Financial accounting and managerial accounting are both used to deliver facts about the organization to a decision maker. Managerial accounting is often mentioned as “cost accounting”. This is the method of categorizing, calculating, investigating, understanding, and connecting data for determining the businesses goals. Managerial accounting and financial accounting vary in significant ways, managerial accounting is designed to assist managers in the…

Words: 822 - Pages: 4
• ###### Essay Global Accounting And Finance Community

hosts events for members to expand their skills, stay up to date with changing developments within the industry, and earn NASBA approved CPA credits. Groups and Networking within the IMA provides members with great connections to the global accounting and finance community. The IMA has created LinkUp IMA, an online professional network exclusively for members. LinkUp IMA allows members to communicate, participate various groups, post announcements and events, utilize shared workspaces, and search for…

Words: 949 - Pages: 4
• ###### Essay Managerial Accounting

PROBLEM 2-21B Predetermined Overhead Rate; Disposition of Underapplied or Overapplied Overhead (LO1, LO7) CHECK FIGURE (2) Underapplied: \$68,600 Adriana Company is highly automated and uses computers to control manufacturing operations. The company uses a job-order costing system and applies manufacturing overhead cost to products on the basis of computer-hours. The following estimates were used in preparing the predetermined overhead rate at the beginning of the year: Computer-hours…

Words: 2321 - Pages: 10