Assignment Description
Prepare the financial ratios for J.C. Penney Company, Inc. (JCP) for the years indicated. Calculate the required financial ratios and reference them in your analysis. Including the following:
o Prepare the financial ratios for the calendar years of 2011, 2012, and 2013. Use the JCP financial documents (balance sheets and income statements) linked in the Resources.
o Comment on the differences between J.C. Penney's ratios and the industry averages.
o Determine the trends evident in the financial statements.
Write a three-page memo divided into the following sections:
o Liquidity.
o Asset management.
o Long-term debt-paying ability.
o Profitability.
Describe the financial problems J.C. Penney currently faces in each area. Determine possible causes of each problem. Propose actions that
J.C. Penney should take to prevent further financial losses. Analyze the importance of using these financial ratios and statements to plan actions that would address potential problems.
Your paper should follow a logical structure and be evidence based. Use the MEAL Plan structure (see Resources) to help guide the organization of your paper.
o Main ideas: Present the main points or ideas that you are making in this paper.
o Evidence: Give us a reason to believe you. Support your reasons with evidence. Acknowledge other view points and respond to them (Booth, Colomb, & Williams, 2009).
o Analysis: Identify the component parts of the articles cited. Identify patterns or themes in the articles reviewed. Use data and information from others to support your main points and ideas.
o Link: Synthesize what you have learned. Integrate and combine ideas from your source articles into a new whole containing your own ideas.
References
Booth, W. C., Colomb, G. G., & Williams, J. M. (2009). Craft of research (3rd ed.). Chicago, IL: University of Chicago Press.
You may use your suggested reading materials as supporting resources as well as reputable sources you find through your own research.
The Financial Ratio Chart (see Resources) is particularly recommended for assistance with your calculations.
Note: You will be submitting two documents for this assignment:
12. Completed financial ratios table for J.C. Penny Company, Inc.
13. The three-page memo.
Refer to the Financial and Operational Analysis Scoring Guide to ensure that you meet the grading criteria for this assignment.
Assignment Formatting Guidelines
Format your paper as follows:
o References: Support your paper with at least three academic resources from the Capella library. You must use proper APA (6th edition) style to list your references. Refer to the Capella Online Writing Center's APA Style and Format module for more information.
o Length of paper: The body of the memo must be 3 full pages, not including the references list, appendices, or the title page. The completed financial ratios table is one page.
o Written communication: Develop accurate written communication and thoughts that convey the overall goals of the project. Your paper should demonstrate graduate-level writing skills and should be free of errors that detract from the overall message.
o Formatting: Use APA (6th edition) formatting, including correct in-text citations, proper punctuation, double-spacing throughout, proper headings and subheadings, no skipped lines before headings and subheadings, proper paragraph and block indentation, no bolding, one-inch margins all around, and no bullets. Refer to the APA Style and Format module for more information.
o Font and font size: Times New Roman, 12 point.