The request: assignment.docxThis assignment is just an overall analysis.
The parts to complete are attached. I am still waiting on Part 4 though.
You have been hired as a consultant for a high-end investor that wants to invest in either of the two companies you have been researching this term. Explain these terms in non-technical language so your client understands the work you completed. Utilize problem-solving techniques in your decision-making process. Requirements: Upload one Word Document double-spaced by the last day of the term 11:59 PM CT. No submissions are accepted after the due date. This assignment should be at least 7 pages and not more than 10 pages not including your cover page or reference page. This paper gives you an opportunity to summarize your work. Your paper should include the following areas set up in the following order and subsection headers: Investment Decision, Ratio Comparison, Trend Analysis, SWOT Analysis, Financial Journal Review, Conclusion, and Reflection on the Financial Analysis Case. Do not forget the last page should be the reference page in APA Style. 1. If you had to pick a company to invest in which of these two companies would you pick? Why? Support and justify your recommendation using business terms. 2. Design a table to compare the two companies and the industry that the companies fall into with at least five different Ratios for each company that was discussed in class and/or the textbook that helps support your recommendation. You must use the most recent ratio information for each company and the industry provided in D&B Hoover Business Browser. Explain what each ratio means. Identify and explain which ratio are the most important to you in your investment decision and why. Remember the D&B Hoovers Business Browser database is located at the library webpage. Once at the Bellevue University Library webpage http://library.bellevue.edu/, you should click on Find –click on Database and then click on “D” and click D&B Hoovers Business Browser. You should enter the name of the company in “Search for a Company”, which is at the top middle part of the screen. Please do not wait until the last day to access this database. 3. Discuss the trends in the stock price and the ratios used in your analysis for both of the companies. 4. Review the complete SWOT analysis reports for each company and compare the two companies to support your recommendation. You need to make sure that you are referencing specific information from each SWOT analysis. 5. Discuss current performance by providing information from at least three different journal articles for each company that discuss the current performance of each company. The articles should not be more than 6 months old. Include a reference page Using APA style that includes a reference for each article and any other references you used in your Par t5 submission. Here is a link to explain how to set up a reference page using APA style: https://owl.english.purdue.edu/owl/resource/560/05/ 6. Include a summary that reflects on what you have learned in this financial analysis case and how you will be able to apply these skills to your personal and work life. Grading Rubric: 1. A well thought out investment decision with ratio analysis. You need to provide at least 5 ratios for each company and the applicable industry ratio for each ratio included in your table that is currently reported in D&B Business Browser. Include an explanation of ratio importance and explain what each ratio is. Develop a table that is easy to read and understand. Worth 25pts. You will not earn any credit for this part ifyou do not include industry specific ratios for each company. 2. Discussion of trends for each company, which must include changes in stock price and ratios. Worth12pts. 3. Review and discuss SWOT analysis of both companies. Worth12pts. 4. Each relevant article journal referenced and discussed to support your conclusion is worth 3pt.each or total of18pts.If you do not include a discussion of the article, and how it supports your recommendation, you will not earn any credit or this part. 5. Providing a conclusion with supporting resources from previous parts and industry specific information from the D&B Business Browser. Worth up to15pts. 6. Providing a well-supported reflection paragraph. Worth 8pts. 7. Appearance and readability of paper is worth 10pts. Which includes a reference page using APA style. Make sure you include all the references you used to develop your recommendation. You will not earn any credit for this part if you have not provided a reference page using APA Style. 8. I will take off .5 pt. For each spelling or grammar errors. Total points possible 100 pts. 1. Provide the URL address of each of 10-K reports at the SEC EDGAR website and give the state the company is incorporated in for each of the companies. URL of 10-K report State incorporated J.C. Penney Company Inc. fiscal year ending February 1, 2020 https://www.sec.gov/ix?doc=/Archives/edgar/data/1166126/000116612620000022/jcp-0201202010k.htm Delaware Kohl’s Corporation fiscal year ending February 1, 2020 https://www.sec.gov/ix?doc=/Archives/edgar/data/885639/000156459020011512/kss-10k_20200201.htm Wisconsin 2. Summarize the company’s business operations as discussed in the beginning of the company’s 10-K in Item 1 for each company. Provide the page number(s) for each of the 10-Ks you are using to support your response. J.C. Penney Company Inc. Kohl’s Corporation Page number(s) referencing Page 3 Page 3 Summarize the company’s business operations Our business consists of selling merchandise and services to consumers through our department stores and our website at jcp.com, which utilizes fully optimized applications for desktop, mobile and tablet devices. Our department stores and website generally serve the same type of customers, our website offers virtually the same mix of merchandise as our store assortment plus other extended categories that are not offered in store, and our department stores generally accept returns from sales made in stores and via our website. We fulfill online customer purchases by direct shipment to the customer from our distribution facilities and stores or from our suppliers' warehouses and by in store customer pick up. We primarily sell family apparel and footwear, accessories, fine and fashion jewelry, beauty products through Sephora inside JCPenney, and home furnishings. In addition, our department stores provide our customers with services such as styling salon, optical, portrait photography, and custom decorating. As of February 1, 2020, we operated 1,159 Kohl's stores, a website (www.Kohls.com), and 12 FILA outlets. Our Kohl's stores and website sell moderately-priced private and national brand apparel, footwear, accessories, beauty, and home products. Our Kohl's stores generally carry a consistent merchandise assortment with some differences attributable to local preferences. Our website includes merchandise that is available in our stores, as well as merchandise that is available only online. 3. What are the total assets, the total liabilities, and the total equity using the audited financial statements for the fiscal year ended February 1, 2020 for J.C. Penney Company Inc. and Kohl’s Corporation available in Item 8? Total Assets Total Liabilities Total Equity Financial Statement Name as stated in the 10-K J.C. Penney Company Inc. Numbers are stated in: Millions $7,989 $7,160 $829 Consolidated Balance Sheet Kohl’s Corporation Numbers are stated in: Millions $14,555 $9,105 This number has to be calculated, since there was not a subtotal for total liabilities. $5,450 Consolidated Balance Sheet Compare and Contrast the size of the net assets (same as book value or same as equity) of the two companies. You need to discuss the specific categories that determine net assets. JCP is a smaller company compared to Kohl’s, when you look at the net assets or total equity. The Total Equity of Kohl’s is over 6 1/2 times larger than JCP. JCP has a lot more debt in comparison to equity and the total liability is almost as large as the total assets. 4. What are the net sales, cost of sales, and net income of the two companies using the audited financial statements available in Item 8 in the table of contents for J.C. Penney Company, Inc. and Kohl’s Corporation? Net Sales or total net sales Cost of Goods Sold or Cost of Merchandise Sold Net Income(Loss) Financial Statement Name J.C. Penney Company, Inc. Numbers are stated in: Millions $10,716 $7,013 (268) Consolidated Statements of Operations Kohl’s Corporation Numbers are stated in: Millions $18,885 $12,140 $691 Consolidated Statements of Income Compare and Contrast the size of sales and net income of the two companies. You need to discuss the different size of the companies in comparison to each other. Kohl’s is the larger company and the net sales are about $8.2 billion dollars higher than JCP. Comparing net income, we can see that JCP had another very bad year and ended up with a net loss compared to KSS’s net income it generated. 5. Compute the average assets, return on assets (answer should be shown in percentage terms), profit margin (answer should be shown in percentage terms), and asset turnover (answer should not be in percentage terms) for the most recent year of the 10-K using the table provided in the template. The companies may use a variation of the account title used in the calculation, so adapt to what is in the financial statements. You are required to show calculations to earn credit. Take percentage calculations to two decimal points, for example 10.23%, and asset turnover to 2 decimal places, for example 1.48. Please review pages 1-19 and 1-20. In Millions You are required to show calculations to earn credit. Average assets-Use the total assets from the previous year plus the total assets for the current year and divide by 2 Return on Assets=Net Earnings/Average Assets In percentage terms to 2 decimal pts. Profit Margin=Net Earning/Net sales In percentage terms to 2 decimal pts. Asset Turnover=net sales/average assets. Show to 2 decimal pts. J.C. Penney Company, Inc. (7,989+7,721)/2= $7,855 (268)/7,855= (3.41%) (268)/10,716= (2.50%) 10,716/7,855=1.36 Kohl’s Corporation (14,555+12,469)/2=$13,512 691/13,512=5.11% 691/19,974= 3.46% 19,974/13,512=1.48 Compare, Contrast, and comment upon the findings. Your comments should include how the profit margin and asset turnover are influencing the return on assets. The profitability ratio, ROA, shows that Kohl’s is earning over 5% on average assets in comparison to JCP that has a negative return on assets of over 3%. On the profit margin, it is showing for every sales dollar Kohl’s is earning about 3.5% in comparison to JCPs negative of over 2.5%. JCP’s profitability ratios are negative, since the earnings have