Please choose a publicly traded company to work on. You may select a company who
ID: 2490527 • Letter: P
Question
Please choose a publicly traded company to work on. You may select a company whose securities are traded on the NYSE, AMEX or NASDAQ. Please do not select a company that is a financial institution or services company. The company should sell merchandise. You must obtain the financial statements of your company. The F/S can be obtained by: a. calling the investor services or stockholder relations department of the company. b. at the company’s website. c. visiting the sec website at www.sec.gov and going to the EDGAR database (where you will look for the “10K”). You can print your financial statement or work from a diskette. However, you must submit the financial statements, footnotes and other information used to answer questions on this assignment sheets. Summary financial data from other financial websites will not be sufficient for you to complete this project. Answer the questions on these sheets. Attach additional sheets as necessary. Your professor will advise you of the due date of this assignment. 1. Fill in some basic information about your company. Name of company: KOHL’S CORPORATION Principal exchange where the company trades: New York Stock Exchange Market price of the stock ________________ as of _____________ (date) Annual dividend ________________________________________ Last dividend paid on ____________________________________ 2. Read the business summaries and management’s discussion and analysis (MD&A). Summarize the remarks (ex. Poor operating results/expansion plans/sale of a division, etc.) 3. What kinds of products and/or services does the corporation provide/sell? 4. a. Which accounting/auditing firm audited the financial statements? b. Did the auditor’s report indicate any problems or exceptions? 5. a. Did you find any new terms within the financial statements? b. Did you find the presentation of the financial statements clear? Why or why not? 6. Indicate the formula to be used and insert the amounts used in computing each ratio. Express your answer in suitable units (percentages, decimals etc.) A. Current ratio B. Quick ratio C. Receivable turnover D. Average days sales uncollected E. Inventory turnover F. Profit margin G. Return on assets H. Return on Equity I. Earnings per share J. Debt to equity ratio K. Dividend yield L. Price earnings ratio (use price from question 1 and EPS from question 6-i)
Explanation / Answer
1. Fill in some basic information about your company. Name of company: KOHL’S CORPORATION Principal exchange where the company trades: New York Stock Exchange Market price of the stock $47.13 as of December 31, 2015 Annual dividend $1.80 of 2015 Last dividend paid on 0.50 as on March 7, 2016
2. After Reading the business summaries and management’s discussion and analysis (MD&A). Summary of the remarks
3. Kinds of products and/or services does the corporation provide/sell
Kohls operated 1,164 family-focused, value-oriented department stores and a website (www.Kohls.com) that sell moderately-priced private label, exclusive and national brand apparel, footwear, accessories, beauty and home products. Kohls stores generally carry a consistent merchandise assortment with some differences attributable to regional preferences. Kohls website includes merchandise which is available in our stores, as well as merchandise which is available only on-line.
4. a. Auditing firm which audited the financial statements?
Ernst & Young LLP
Milwaukee, Wisconsin
b. Did the auditor’s report indicate any problems or exceptions
No Adverse Remark
5. a. Did you find any new terms within the financial statements?
No
b. Did you find the presentation of the financial statements clear?
Yes
6. Indicate the formula to be used and insert the amounts used in computing each ratio. Express your answer in suitable units (percentages, decimals etc.)
A. Current ratio = Current Assets/ Current liabilities = 5076 / 2714 = 1.87
B. Quick ratio = ((Current Assets - Inventory)/Current Liabilities) = (5076-4369)/2714 = 0.26