Acct 504

ACCT 504
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ACCT 504 ENTIRE COURSE + FINAL EXAM
ACCT 504 Week 3 Case Study 1 Flower Landscaping Corporation
ACCT 504 Week 5 Case Study 2 InternalControl LJB Company
ACCT 504 Week 5 Course Project Draft Spreadsheet
ACCT 504 Week 6 Case Study 3 Cash Budgeting LBJ Company
ACCT 504 Week 7 Course Project JCPKohls
ACCT 504 FinalExam (3 different sets)
+ Discussions
FinancialReporting Environment and GAAP
Details of Financial Statements and Ratios
Accounting EquationAccounting Cycle
AccrualAccounting andAdjusting Entries
Merchandising Operations and Income Statements
Inv entory Cost-Flow Assumptions
Understanding InternalControl and Reporting Cash
Accounting for andReporting Receivables

Plant Assets andIntangibles
Accounting for Liabilities
Accounting for andReporting Equity
Statement of Cash Flows
Issues in Income Reporting
Different Tools for FinancialAnalysis
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uct/acct-504-entire-course-final-exam
ACCT 504 FINAL EXAM (3 DIFFERENT FINALS)
1 . (TCO A)Which one of the following is an advantage of corporations relativetopartnerships and sole
proprietorships? (Points : 5)
Reduced legal liability for investors
Harder totransfer ownership
Lower taxes
Most common form of organization
2. (TCO A) When a corporation distributes a dividend,_____.(Points : 5)
the most common form of distribution is a cash dividend
the Dividends account willbe increased with a credit
the Retained Earnings account will be directly increased with a debit
the Dividends account willbe decreasedwith a debit
3. (TCOs A, B) Below is a partial list of account balances for Cerner Company:
Cash $5,000
Prepaid insurance 500
Accounts receivable 2,500
Accounts payable2,000
Notes pay able 3,000
Common stock1 ,000
Div idends 500

Rev enues 15,000
Expenses 1 2,500
What did Cerner Company show as totalcredits? (Points : 5)
$21 ,500
$21 ,000
$20,500
$22,000
4. (TCOs B, E) Using accrualaccounting,expenses are recorded and reportedonly _____.(Points : 5)
when they are incurred,whether or not cash is paid
when they are incurred andpaid at the same time
if they are paid before they are incurred
if they are paid after they are incurred
5. (TCO D) Three companies report the same cost of goods av ailable for sale, but each employs a different inventory
costing method. If the price of goods has increased during the period, then thecompany using _____.(Points : 5)
LIFO will have the highest ending inventory
FIFO will have the highest cost of goods sold
All threecompanies will have the same value for ending inventory.
av erage cost willhave an ending inventory value that falls between FIFO and LIFO
6. (TCOs A, E) Equipment with a cost of $1 92,000has an estimated salvage value of $1 8,000and an estimated life of
4 y ears or 1 2,000hours. It is tobe depreciated by the straight-linemethod. What is the amount of depreciation for
the first fullyear,during which the equipment was used 3,300 hours? (Points : 5)
$48,000
$52,500
$49,500
$43,500
7 . (TCOs D, G) Joyce Corporation issues 1,000 ten-year,8%,$1,000 bonds dated January 1,2007, at 102.The journal
entry torecord the issuance will show a _____.(Points : 5)
debit toCash of $1 ,020,000
debit toDiscount on Bonds Payable for $20,000
credit toBonds Payable for $1,020,000
credit toCash for $1 ,000,000
8. (TCO C) Accounts receivable arising from sales tocustomers amounted to$80,000and $70,000at the beginning
and end of the y ear, respectively. Income reported on the incomestatement for the year was $240,000.Exclusiveof

the effect of other adjustments,the cash flows from operating activities tobe reported on the statement of cash flows
is _____. (Points : 5)
$240,000
$250,000
$31 0,000
$230,000
9. (TCO F) One v ariation of the horizontal analysis is known as _____.(Points : 5)
nonlinearanalysis
v erticalanalysis
trend analysis
common-size analysis
1 0. (TCO F) Comparisons of data within a company are an example of the following comparative basis.(Points : 5)
Industry averages
Intercompany
Intracompany
Interregional
1 1. (TCO F) Which one of the following is not a characteristicgenerally evaluated in ratioanalysis? (Points : 5)
Liquidity
Profitability
Marketability of the product
Solv ency
1 2.(TCO F) Short-termcreditors are usually most interested in assessing _____.(Points : 5)
solv ency
liquidity
marketability
profitability
1 3.(TCOF) Long-term creditors are usually most interested in evaluating _____.(Points : 5)
liquidity
marketability
profitability
solv ency
1 4.(TCO G) Tocalculate the market value of a bond, we needto_____. (Points : 5)
find out the present valueof all of the future cash payments promised by the bond

calculate the present valueof the principalonly
calculate the present valueof the interest only
multiply the bond price by theinterest rate
1 . (TCO A)Which one of the following is an advantage of corporations relativetopartnerships and sole
proprietorships? (Points : 5)
Reduced legal liability for investors
Harder totransfer ownership
Lower taxes
Most common form of organization
3. (TCOs A, B) Below is a partial list of account balances for Cerner Company:
Cash $5,000
Common stock1 ,000
Div idends 500
Rev enues 15,000
Expenses 1 2,500
What did Cerner Company show as totalcredits? (Points : 5)
$21 ,500
$21 ,000
$20,500
$22,000

4. (TCOs B, E) A smalland private company may be able tojustify using a cash basis of accounting if it has _____.
(Points : 5)
sales under $1 ,000,000
noaccountants on staff
insignificant receivables and payables
all sales andpurchases on account
5. (TCO D) Three companies report the same cost of goods av ailable for sale, but each employs a different inventory
costing method. If the price of goods has increased during the period, then thecompany using _____.(Points : 5)
LIFO will have the highest ending inventory
FIFO will have the highest cost of goods sold
All threecompanies will have the same value for ending inventory.
av erage cost willhave an ending inventory value that falls between FIFO and LIFO
6. (TCOs A, E) Equipment was purchasedfor $60,000. Freight charges amounted to$2,800and therewas a cost of
$8,000 for building a foundation andinstalling the equipment.It is estimated that the equipment willhave a $12,000
salv age value at the end of its 5-y ear useful life. Depreciation expense each year using the straight-line method willbe
_____. (Points : 5)
$1 4,160
$1 1 ,760
$9,840
$9,600
7 . (TCOs D, G) MendezCorporation issues 2,000ten-year, 8%, $1,000bonds dated January 1, 2007,at 103. The
journalentry torecord the issuance willshow a _____.(Points : 5)
debit toCash of $2,000,000
debit toPremiumon Bonds Payable for $60,000
credit toBonds Payable for $2,000,000
credit toCash for $2,060,000
8. (TCO C) Accounts receivable arising from sales tocustomers amounted to$35,000 and$40,000at the beginning
and end of the y ear, respectively. Income reported on the incomestatement for the year was $120,000.Exclusive of

is _____. (Points : 5)
$1 20,000
$1 25,000
$1 55,000
$1 1 5,000
9. (TCO F) One v ariation of the horizontal analysis is known as _____.(Points : 5)
nonlinearanalysis
v erticalanalysis
trend analysis
common-size analysis
1 0. (TCO F) In a common-size balance sheet,the 100% figureis _____. (Points : 5)
total current assets
total property,plant,and equipment
total liabilities
total assets
1 1. (TCO F) In v erticalanalysis,the base amount for studying salary and wages expense is generally _____.(Points :
5)
net sales
salary andwages expense in a previous year
gross profit
net income
1 2.(TCO F) A common measure of profitability is the _____.(Points : 5)
current ratio
current cash debt coverage ratio
return on common stockholder's equity ratio
debt tototal assets

1 3.(TCOF) Return-on-assets ratiois most closely related to_____.(Points : 5)
profit margin and debt-to-total-assets ratio
profit margin and asset-turnover ratio
times interest earned and debt-to-stockholders equity ratio
profit margin and free cash flow
1 . (TCO A)An advantageof the corporate form of business is that _____. (Points : 5)
it has limited life
its owner's personalresources are at stake
its ownershipis easily transferable via the saleof shares of stock
it is simple toestablish
3. (TCOs A, B) Below is a partial list of account balances for Denton Company:
Cash $7 ,000
Common stock1 ,400
Div idends 700
Rev enues 21,000
Expenses 17,500

What did Denton Company show as total credits? (Points : 5)
$30,100
$29,400
$28,700
$30,800
4. (TCOs B, E) A smalland private company may be able tojustify using a cash basis of accounting if it has _____.
(Points : 5)
sales under $1 ,000,000
noaccountants on staff
insignificant receivables and payables
all sales andpurchases on account
5. (TCO D) In a period of increasing prices,which inventory cost flow assumption willresult in the lowest amount of
income tax expense?(Points : 5)
FIFO
LIFO
The average cost method
Income tax expense for the period willbe the same under allassumptions.
6. (TCOs A, E) Equipment was purchasedfor $60,000. Freight charges amounted to$2,800and therewas a cost of
$8,000 for building a foundation andinstalling the equipment.It is estimated that the equipment willhave a $12,000
salv age value at the end of its 5-y ear useful life. Depreciation expense each year using the straight-line method willbe
_____. (Points : 5)
$1 4,160
$1 1 ,760
$9,840
$9,600
7 . (TCOs D, G) LopezCorporation issues 500ten-year,8%,$1 ,000bonds dated January 1,2007,at 96.The journal
entry torecord the issuance will show a _____.(Points : 5)
debit toCash of $500,000
credit toDiscount on Bonds Payable for $20,000
credit toBonds Payable for $480,000
debit toCash for $480,000

8. (TCO C) Accounts receivable arising from sales tocustomers amounted to$35,000 and$40,000at the beginning
and end of the y ear, respectively. Income reported on the incomestatement for the year was $120,000.Exclusive of
is _____. (Points : 5)
$1 20,000
$1 25,000
$1 55,000
$1 1 5,000
9. (TCO F) Which one of the following is not a tool in financialstatement analysis? (Points : 5)
Horizontalanalysis
Circular analysis
Verticalanalysis
Ratioanalysis
1 0. (TCO F) In v ertical analysis,the base amount for studying salary and wages expense is generally _____.(Points :
5)
net sales
salary andwages expense in a previous year
gross profit
net income
1 1. (TCO F) Ratios are most usefulin identifying _____.(Points : 5)
trends
differences
causes
relationships among different numbers
1 2.(TCO F) A common measure of liquidity is _____.(Points : 5)
return on assets
current ratio
profit margin
debt toequity
1 3.(TCOF) Return-on-assets ratiois most closely related to_____.(Points : 5)

profit margin and debt-to-total-assets ratio
profit margin and asset-turnover ratio
times interest earned and debt-to-stockholders equity ratio
profit margin and free cash flow
1 . (TCO A)Below you willfind selected information (in millions) from Coca-Cola Co.’s 2012 AnnualReport:
.........................................................................................................................................................................
Required:
1 . Using the information provided prepare a Balance Sheet.Separate thecurrent assets from non-current assets and
prov idea total for each.Alsoseparate the current liabilities from the non-current liabilities and providea total for
each.
2. Using the Balance Sheet from your answer above calculate; Current Ratio, Days in Inventory,Average Collection
Period, Return on Assets Ratio, Debt toTotal Assets and Return on common stockholders’ equity ratio.(Make sure to
show all your work)
2. (TCO B) The following selected data was retrieved from the Wal-Mart, Inc.financialstatements for the year ending
January 31,2013:
................................................................................................................................................................................................
........................
Required:
Using the information provided above:
1 . Prepare a multiple-step income statement
2. Calculate the Profit Margin,and Gross profit rate for the company.Be suretoprovide the formula you are using,
show y our calculations,and discuss your findings/results.
3. (TCO C) Please review the following real-world Hewlett Packard Statement of Cash flows and address the 2
questions below:

................................................................................................................................................................................................
................
Required:
1 ) Please calculate the percentage increase or decrease in cash for theoperating, investing,and financing sections and
explain the major reasons for the increase or decrease for each of these sections.
2) Please calculatethe freecash flow for 2012 and explain the meaning of this ratio.
4. (TCO D) You are CFO of Goforit, Inc.,a wholesale distribution company specializing in emerging technologies.
Your CEO is a brilliant marketer,but relies on y ou toexplain issues and choices in accounting and finance.She has
heard from other members of a CEO organization towhich shebelongs that a company’s net incomecan vary widely
depending on which accounting choices are made from the “GAAPmenu.”
Assuming thegoalis tomaximize net income,choose an accounting treatment from each of the following scenarios,
and explain toyour CEO why the choice willproduce the desired effect on reported Net Income for the current year.
Include in your answer the effect of the choice on both the incomestatement and balance sheet.
Required:
a. Goforit carries significant electronics inventory in a competitive environment where prices are actually falling.
Which inventory valuation method would you choose—LIFO, FIFO, or av erage cost? Assume that unit purchases
exceed unit sales.
b. Goforit has a large investment in warehouse equipment including conveyor belts, forklifts, and automated
packaging systems. Which depreciation method would you choose: Straight line(SL) or double declining balance
(DDB)?
5. (TCO F) Please review the following real-world ratios for Johnson & Johnson and Pfizer for theyear ended 2012
and address the 2 questions below.
................................................................................................................................................................................................
..................
Required:
1 ) Please explain the meaning of each of the Pfizer ratios above.
2) Please state which company performed better for each ratio.

uct/acct-504-final-exam-3-different-finals
ACCT 504 WEEK 1-7 DISCUSSION QUESTION
 FinancialReporting Environment and GAAP
 Details of Financial Statements and Ratios
 Accounting EquationAccounting Cycle
 AccrualAccounting andAdjusting Entries
 Merchandising Operations and Income Statements
 Inv entory Cost-Flow Assumptions
 Understanding InternalControl and Reporting Cash
 Accounting for andReporting Receivables
 Plant Assets andIntangibles
 Accounting for Liabilities
 Accounting for andReporting Equity
 Statement of Cash Flows
 Issues in Income Reporting
 Different Tools for FinancialAnalysis
uct/acct-504-week-1-7-discussion-question
ACCT 504 WEEK 3 CASE STUDY 1 FLOWER
LANDSCAPING CORPORATION
CASE STUDY 1 -THE COMPLETE ACCOUNTINGCYCLE The EntireCase Study is due Sunday at Midnight Mountain
time at the end of Week 3.This Case Study is worth 100points or 1 0% of y our finalcourse grade. This Case Study
relates toTCO's D and E and Chapters 3 and 4.MAKE SURE TO COMPLETE ALLREQUIREMENTS WHICH ARE
LISTED BELOW. Thereare 10 Sheets in theWorkbook including this one. Allof the Information you need for the
Project is located in this Workbook.Requirements Sheet in Workbook Requirement 1 -Prepare the JournalEntries in
the General Journal Journal Entries Requirement 2 -Post Journal Entries totheGeneralLedger GeneralLedger

Requirement 3 -Prepare a TrialBalance TrialBalance Requirement 4 -Prepare the Adjusting Entries Adjusting
Entries Requirement 5 -Post Adjusting Entries tothe General Ledger General Ledger Requirement 6 -Prepare an
Adjusted Trial Balance Adjusted TB Requirement 7 -Prepare the FinancialStatements FinancialStatements
Requirement 8 -Prepare the Closing Entries Closing Entries Requirement 9 -Post Closing Entries tothe General
Ledger GeneralLedger Requirement 10 -Prepare the Post Closing Trial Balance Post Closing TB Hint for success:
rev iew the Week2 Lecture prior tostarting this project.There are alsohints contained within certain cells on some of
the worksheet tabs. You can hover over the red pointer at the top right-hand corner of the celltoread the hint.Hints
are provided for the following balances: 1)Thedebits for the journal entries on theJournalEntries tab 2) The credits
for the journalentries on the JournalEntries tab3)Thecash balanceon the GeneralLedger tab 4)The debits for the
trialbalance on the TrialBalance tab 5)Thecredits for the trialbalance on the TrialBalance tab 6) The debits for the
adjusted trialbalance on the AdjustedTrial Balance tab 7) The credits for theadjusted trial balance on the Adjusted
TrialBalance tab 8)Net Incomefor theIncomeStatement on the FinancialStatements tab 9) Retained earnings as of
March 31 on the Financial Statements tab 10)Total assets for the Balance Sheet on theFinancial Statements tab 11)
Total liabilities and shareholders'equity for the Balance Sheet on the Financial Statements tab12) The debits for the
post-closing trialbalance on the Post-Closing TrialBalance tab 13)The credits for the post-closing trialbalance on the
Post-Closing TrialBalance tab REQUIREMENT #1: During its first month of operation,the Flower Landscaping
Corporation,which specializes in residentiallandscaping,completed thefollowing transactions: March 1 Began
business by making a deposit in a company bankaccount of $7 2,000,in exchange for 7,200shares of $1 0 par value
common stock.March 1 Paid thecurrent month's rent, $4,500.March 1 Paid the premiumon a one-year insurance
policy ,$3,300. March 7 Purchased supplies on account from Parkview Company,$900.March 10Paid employee
salaries,$2,200.March 14 Purchased equipment from Hammond Company,$9,000. Paid$1 ,500down and the
balance was placed on account.Payments willbe $375.00per month for twenty months.The first payment is due 4/1.
Note: Use Accounts Payable for the Balance Due. March 15 Received cash for landscaping revenue for the first half of
March,$4,896.March 19 Made payment on account toParkview Company,$450.March 31 Received cash for
landscaping revenue for the last half of March,$5,304. March 31 Declared and paid cash dividend of $1 ,000.
uct/acct-504-week-3-case-study-1-flower-
landscaping-corporation
ACCT 504 WEEK 5 CASE STUDY 2 INTERNAL
CONTROL LJB COMPANY
Case Study 2 -InternalControl-Due by Sunday of week 5
LJB Company,a local distributor,has asked your accounting firm toevaluatetheir system of internal controls
because they areplanning togopublicin the future.ThePresident wants tobe aware of any new regulations required

of his company if they gopublic sohe met with a colleague of y ours at a localrestaurant. The President of the
company explained the current system of internal controls toyour colleague.Your colleague has since been promoted
to a tax position soshe has passed on the information below soy ou can generate recommendations for the partner at
y our accounting firm toshare with the President of LJB Company.
Since LJB Company is a relatively lean organization,they havea lot of faith in their long-term employees. They have
one accountant whoserves as Treasurer and Controller which streamlines many of their processes. In this dualrole,
he purchases all of the supplies and pays for these purchases.He alsoreceives the checks and completes the monthly
bank reconciliation.Theaccountant is sobusy that the company handles petty cash a bit differently.All employees
have access tothe petty cash in a desk drawer andare asked toonly place a note if they use any of the cash.
The accountant has recently started using pre-numbered invoices and wants tobuy an indelible inkmachinetoprint
their checks. The President is waiting tohear from you if this is a necessary purchase before authorizing.
On pay day,the checks are picked up by theaccountant and left in his office for pick-up.Before heleaves for the
weekend,he will movethe checks intoa safe in his office.
The President is stillquite embarrassed because he had tofire one of his employees for viewing pornography on a
company computer. He later found out this individualwas a conv icted felon whoserved time for molesting children.
The company had a hard time getting the employee toadmit it was him because the company does not assign
individual passwords. The President expressed his frustration because both he and the accountant both interview and
approve all of the new hires.
Required:
Based on the above information,prepare a Word document toaddress the following:
Inform thePresident of any new internal control requirements if the company decides togopublic.(7 points) Advise
the President of what the company is doing right (they are doing some things well) and alsorecommend tothe
President whether or not they shouldbuy the indelible ink machine.When you advise the President,please be sure to
reference theapplicableinternalcontrol principle that applies. (13 points) Advise the President of what the company
is doing wrong (they are definitely doing some things poorly).Please be sure toinclude theinternalcontrol principle
that is being violated along with a recommendation for improvement.(20points)
You must prepare a formal report for the partner todistribute tothe President sonoabbreviations or short -hand
answers.You alsomust cite your references.At a minimum,your textbook shouldbe cited.
Below is a grading rubric for this assignment.
Category
Points

Description
Understanding
1 0
Demonstrate a strong grasp of the problem at hand.Demonstrate understanding of how the course concepts apply to
the problem.
Analysis
30
Apply originalthought tosolving the business problem.Apply concepts from the course materialcorrectly toward
solv ing the business problem.
Execution
1 0
Write your answer clearly and succinctly using strong organization andproper grammar.Use citations correctly.
Total
50
A quality paper will meet or exceed allof the above requirements.
Best Practices
The following are best practices in preparing this paper.
Cov er Page: Include whom you prepared the paper for, whoprepared it, and thedate.Table of Contents: List the main
ideas and sections of the paper and thepages where they are located.Illustrations should be included separately.
Introduction: Use a header on your paper.This willindicate that you are introducing thepaper.
The purpose of an introduction or opening is tointroduce the subject and why the subject is important; preview the
main ideas and theorder in which they willbe cov ered; and establish thetone of the document.
Include in the introduction a reason for the audience toread the paper.Alsoincludean overview of what you will
cov er and theimportance of the material.(This should include or introduce thequestions you are askedtoanswer in
each assignment.)

Body of the Report: Use a header with the nameof the case study.An example is,"The Development of Hotel X: A
World Class Resort."Proceed tobreak out the main ideas: State the main ideas, themajor points of each idea,and
prov ideevidence.Show some typeof div ision,such as separate,labeledsections; separate groups of paragraphs; or
headers. Include the information you found during your research and investigation.Summary and Conclusion:
Summarizing is similar toparaphrasing but presents thegist of the material in fewer words than the original.An
effective summary identifies themain ideas and the major su pport points from the body of the report; minor details
are left out. Summarize the benefits of the ideas and how they effect the subject.WorkCited: Use the citation format
specified in the Syllabus.
uct/acct-504-week-5-case-study-2-internal-
control-ljb-company
ACCT 504 WEEK 5 COURSE PROJECT DRAFT
SPREADSHEET
uct/acct-504-week-5-course-project-draft-
spreadsheet
ACCT 504 WEEK 6 CASE STUDY 3 CASH BUDGETING
LBJ COMPANY
ACCT504 Case Study 3 on Cash Budgeting
The cash budget was coveredduring Week4 when wecovered TCOD and you read Chapter 7. Thereis alsoa practice
case study towork on.Your Professor willprovidethe solution tothe practice case study at the end of Week 5. This
case study should be uploaded by 11:59PM Mountain time of the Sunday ending Week 6 tothe Week6 Assignment
Dropbox. You are encouragedtouse the Exceltemplate fileprovided in Doc Sharing.
The LBJ Company has budgeted sales revenues as follows:
April May June
Credit sales $94,000 $89,500$75,000
Cash sales 48,000 75,00057,000

Total sales $142,000$164,500 $132,000
Past experience indicates that 30% of the credit sales will be collected in the month of sale and the remaining 70%will
be collected in the following month.
Purchases of inventory are allon credit and40% is paid in themonth of purchase and 60% in the month following
purchase.Budgeted inventory purchases are$1 95,000in April, $135,000in May,and $63,000in June.
Other budgeted cash receipts: (a) sale of plant assets for $33,000in May,and (b) sale of new common stockfor
$50,000in June.Other budgeted cash disbursements: (a)operating expenses of $1 5,000each month, (b)selling and
administrativeexpenses of $1 0,150each month,(c)purchase of equipment for $19,000cash in June, and (d)
div idends of $20,000 will be paidin June.
The company hasa cash balance of $20,000 at thebeginning of May and wishes tomaintain a minimumcash balance
of $20,000at the end of each month.An open lineof credit is available at the bankand carries an annualinterest rate
of 1 0%. Assumethat allborrowing is done on the first day of the month in which financing is needed and that all
repayments are made on the last day of the month in which excess cash is available.Alsoassume that there is no
outstanding financing as of May 1.
Requirements:
1 . Use this information topreparea Cash Budget for the months of May and June,using the template provided in Doc
Sharing.
2. What arethe three sections of a Cash Budget,and what is included in each section?
3. Why is a Cash Budget sov ital toa company?
4. What arethefivebasicprinciples of cash management that a company can follow in order toimprove its chances of
having adequate cash?
uct/acct-504-week-6-case-study-3-cash-
budgeting-lbj-company
ACCT 504 WEEK 7 COURSE PROJECT JCP KOHLS
Your Course Project
FinancialStatement Analysis Project --A ComparativeAnalysis of Kohl’s Corporation and J.C.Penney Corporation

Below is the linkfor the financialstatements for Kohl’s Corporation for the 2010 fiscalyear ending January 29, 2011.
Under the term Groupings Filter,change the termAllForms toAnnualFilings using the drop-down arrow and press
Search.
You should then scrolldown andselect the 10k dated3/18/2011 and choose todownload in Word or PDF format.
http://www.kohlscorporation.com/InvestorRelations/sec-filings.htm
Below is the linkfor the financialstatements for J.C.Penney Corporation for the 2010 fiscalyear ending January 29,
2011. Under the termGroupings Filter,change the term All Forms toAnnualFilings using thedrop-down arrow and
press Search.
You should then scrolldown andselect the 10k dated3/29/2011 and choose todownload in Word format.
http://ir.jcpenney.com/phoenix.zhtml?c=70528&p=irol-sec
A sample Project template is available for download in Doc Sharing. The sample project compares the ratio
performance of Tootsie Roll and Hershey using the2009 financial statements of Tootsie Roll and Hershey provided
in Appendix A and Appendix B of y our textbook.
Description
This course contains a course project where you will be required tosubmit one draft of the Project at the endof Week
5 and the finalcompleted Project at the endof Week 7 . Using the financialstatements for Kohl’s Corporation and J.C.
Penney Corporation,respectively, you willcalculate and compare thefinancialratios listed further down this
documentfor the fiscal year ending 2010 andprepare your comments about the liquidity, solvency and
profitability of the twocompanies based on your ratiocalculations. The entireproject will be graded by the
instructor at the end of the final submission inweek 7 and one grade will be assigned for the entire
project.
Overall Requirements
For the Final Submission:
Your final Excelworkbook submission should contain thefollowing.You cannot use any other software butExcel to
complete this Project.
1 ) A completed worksheet titlepage tab which is really a cover sheet with your name,the course,the date, your
instructor’s name and the title for the project.
2) A completedworksheet profiles tab which contains a one paragraph description regarding each company with
information about their history,what products they sell,where they are located,etc.
3) All 18 ratios for each company with the supporting calculations and commentary on your worksheet ratiotab.
Supporting calculations must be shown either as a formula or as text typed intoa different cell.The ratios are listed
further down this document.Your comments for each ratioshould include more than just a definition of the ratio.

You should focus on interpreting each rationumber for each company and support your comments with the numbers
found in the ratios.
4) The Summary and Conclusions worksheet tab which is an overallcomparison of how each company compares in
terms of the major category of ratios (Liquidity,Profitability,and Solvency). A nice way toconclude is tostate which
company you think is the better investment and why.
5) The Bibliography worksheet tab must contain at least your textbook as a reference. Any other information you use
to profile the companies should alsobe cited as a reference.
Required Ratios for Final Project Submission
1 ) Earnings per Share
2) Current Ratio
3) Gross Profit Rate
4) Profit Margin Ratio
5) Inv entory Turnover Ratio
6) Days in Inventory
7 ) Receivables Turnover Ratio
8) Av erage Collection Period
9) Asset Turnover Ratio
1 0) Return on Assets Ratio
1 1) Debt toTotalAssets Ratio
1 2)Times Interest Earned Ratio
1 3)Payout ratio
1 4)Return on Common Stockholders’Equity Ratio
1 5) Free Cash Flow
1 6)Current Cash Debt Coverage Ratio
1 7) Cash Debt Coverage Ratio

1 8) Price/Earnings Ratio[For thepurpose of this ratio, for both Kohl’s and J.C.Penney,use the market priceper
share on January 31,2011]
The Excel files uploaded in the dropboxes should not include any unnecessary numbers or
information (such as previous years' ratios, ratios that were not specifically asked for in the project,
etc.).
Please upload your finalsubmission tothe Week7 Dropbox by the Sunday ending Week 7.
For the Draft:
Createan Excelspreadsheet or use theProject template toshow your computations for thefirst 12 ratios listed above.
The more you can complete regarding the other requirements thecloser you willbe tocompletion when Week 7
arrives. Supporting calculations must be shown either as a formula or as text typed intoa different cell.If y ou plan on
creating your own spreadsheet,please follow the format provided in the Tootsie Roll and Hershey template file.
Please upload your draft submission tothe Week5 Dropbox by the Sunday ending Week 5.
Other Helpful information:
If y ou feel uncomfortablewith Excel, you can find many helpfulreferences on Excel by performing a Google search.
The Appendix toChapter 13 contains ratiocalculations and comparison comments related toKellogg andGeneral
Mills so y ou will likely find this information helpful.
BigCharts.com provides historicalstock quotes.
Either APA or MLA style can be used tocomplete the references on y our Bibliography tab.There is a tutorialfor APA
and MLA sty le within the syllabus.
uct/acct-504-week-7-course-project-jcp-
kohls
ACCT 505 WEEK 7 CAPITAL BUDGETING COURSE
PROJECT (DEVRY)
Clark Paints: The production department has been investigating possible ways totrim total production costs. One
possibility currently being examined is tomake thepaint cans instead of purchasing them.Theequipment needed
would cost $200,000 with a disposal value of $40,000 and would be abletoproduce 5,500,000cans ov er thelife of
the machinery.Theproduction department estimates that approximately 1,100,000cans would be needed for each of
the next five years.

The company would hire three new employees.These three individuals would be full-time employees working 2,000
hours per year andearning $12.00per hour.They would alsoreceive thesame benefits as other production
employees,18% of wages in addition to$2,500of health benefits.
It is estimatedthat theraw materials will cost 25¢ per can and that other variablecosts would be 5¢ per can. Since
there is currently unusedspace in the factory,noadditionalfixedcosts would be incurred if this proposalis accepted.
It is expected that cans wouldcost 45¢per can if purchased from the current supplier.The company's minimum rate
of return (hurdlerate) has been determinedtobe 1 2% for allnew projects,and the current tax rate of 35% is
anticipated toremain unchanged.The pricing for a gallon of paint as well as number of units sold willnot be affected
by this decision.The unit-of-production depreciation method would be used if the new equipment is purchased.
Required:
1 . Based on theabove information and using Excel,calculatethe following items for this proposed equipment
purchase:
Annual cash flows over the expected life of the equipment Paybackperiod Annualrate of return Net present value
Internalrate of return
2. Would you recommend the acceptance of this proposal? Why or why not.Prepare a short dou ble
spaced Word paper elaborating and supporting your answer.
uct/acct-505-week-7-capital-budgeting-
course-project-devry
HomeworkMotivator.com

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