Financial statements such as income statements, cash flow statements, and balance sheets are reports which companies use to report financial information to the public and stock holders (Pride, Hughes and Kapoor, 2015). These financial documents enable the public and prospective investors informative on the financial viability of the company. Additionally, these statements assist potential investors in knowing how the senior executives are managing the company’s resources. Unfortunately for JCPenney the 2013 annual report financials reflected poor performance which may have “scared off” potential investors.
Are there any risks associated with the compilation and analysis of information, for example, accuracy or relevance?
There may be an …show more content…
These pages are intended to relay to the public and potential investors how JCPenney did financially throughout the period of three years. It appears that prior to 2012 that the corporation was financially stable. For instance, the net sale and gross income reflected that JCPenney was profitable and was expanding. It appears that the company reported net losses for 2011-2013. In 2012 the net loss was a 25.7% decrease in their net sales. (JCP 10-K Annual Report, page 22). Upon review of these pages it looks as if the sales revenues experienced a significant decline in 2012 after former CEO Ron Johnson’s reinvention of the company. It appears that the reports on pages 22-23 that JCP may be in a financial risky position. As such it may not be an ideal time for potential investors to invent in …show more content…
Lastly, refer to page 49 of the Annual Report. You will notice that this is the Index to Consolidated Financial Statements. Review this page. Identify what page the following consolidated statements are located on, and enter the page number—you will want to save this information, as it will help you to quickly locate the information you need in future worksheets. You only need to review the Index and list the page number of the following statements:
1. Consolidated Statement of Operations
2. Consolidated Statement of Comprehensive Income/(Loss)
3. Consolidated Balance Sheet
4. Consolidated Statement of Stockholder’s Equity
5. Consolidated Statement of Cash Flow
1. Consolidated Statement of Operations. This information is located on page 51 of the JCP 10-K 2013 Annual Report.
2. Consolidated Statement of Comprehensive Income/ (Loss) Located on page 52 of the JCP 10-K 2013 Annual Report.
3. Consolidated Balance Sheet. Located on page 53 of the JCP 10-K2013 Annual Report.
4. Consolidated Statement of Stockholder’s Equity. Located on page 54the JCP 10-K 2013 Annual Report.
5. Consolidated Statement of Cash Flow. Located on page 55 of the JCP10-K 2013 Annual
Are there any risks associated with the compilation and analysis of information, for example, accuracy or relevance?
There may be an …show more content…
These pages are intended to relay to the public and potential investors how JCPenney did financially throughout the period of three years. It appears that prior to 2012 that the corporation was financially stable. For instance, the net sale and gross income reflected that JCPenney was profitable and was expanding. It appears that the company reported net losses for 2011-2013. In 2012 the net loss was a 25.7% decrease in their net sales. (JCP 10-K Annual Report, page 22). Upon review of these pages it looks as if the sales revenues experienced a significant decline in 2012 after former CEO Ron Johnson’s reinvention of the company. It appears that the reports on pages 22-23 that JCP may be in a financial risky position. As such it may not be an ideal time for potential investors to invent in …show more content…
Lastly, refer to page 49 of the Annual Report. You will notice that this is the Index to Consolidated Financial Statements. Review this page. Identify what page the following consolidated statements are located on, and enter the page number—you will want to save this information, as it will help you to quickly locate the information you need in future worksheets. You only need to review the Index and list the page number of the following statements:
1. Consolidated Statement of Operations
2. Consolidated Statement of Comprehensive Income/(Loss)
3. Consolidated Balance Sheet
4. Consolidated Statement of Stockholder’s Equity
5. Consolidated Statement of Cash Flow
1. Consolidated Statement of Operations. This information is located on page 51 of the JCP 10-K 2013 Annual Report.
2. Consolidated Statement of Comprehensive Income/ (Loss) Located on page 52 of the JCP 10-K 2013 Annual Report.
3. Consolidated Balance Sheet. Located on page 53 of the JCP 10-K2013 Annual Report.
4. Consolidated Statement of Stockholder’s Equity. Located on page 54the JCP 10-K 2013 Annual Report.
5. Consolidated Statement of Cash Flow. Located on page 55 of the JCP10-K 2013 Annual