menu
bartleby
search
close search
Hit Return to see all results
close solutoin list

Analyze and compare J. C. Penney and Macy’s J. C. Penney Company, Inc. (JCP) and Macy’s, Inc. (M) are large department store chains in the United States. Information from recent annual reports for both companies is as follows (in millions): a. Determine the days’ cash on hand for each company. Round to one decimal place. b. Which company has the better liquidity position?

BuyFindarrow_forward

Financial And Managerial Accounting

15th Edition
WARREN + 1 other
Publisher: Cengage Learning,
ISBN: 9781337902663

Solutions

Chapter
Section
BuyFindarrow_forward

Financial And Managerial Accounting

15th Edition
WARREN + 1 other
Publisher: Cengage Learning,
ISBN: 9781337902663
Chapter 7, Problem 2MAD
Textbook Problem
19 views

Analyze and compare J. C. Penney and Macy’s

J. C. Penney Company, Inc. (JCP) and Macy’s, Inc. (M) are large department store chains in the United States. Information from recent annual reports for both companies is as follows (in millions):

Chapter 7, Problem 2MAD, Analyze and compare J. C. Penney and Macys J. C. Penney Company, Inc. (JCP) and Macys, Inc. (M) are

  1. a. Determine the days’ cash on hand for each company. Round to one decimal place.
  2. b. Which company has the better liquidity position?

a.

To determine

Compute the day’s cash on hand for Company JCP and Company M (round all calculations to one decimal place).

Explanation of Solution

Day’s cash on hand: Day’ cash on hand refers to the cash and near cash balances available with a business organization to meet its daily operating expenses. The formula to calculate the day’s cash on hand is:

Days’ Cash on Hand =Cash + Short-Term Investments(Operating Expenses - Depreciation Expense) ÷ 365 Days

Compute the day’s cash on hand for Company JCP:

Days’ Cash on Hand =Cash + Short-Term Investments(Operating Expenses  Depreciation Expense) ÷ 365 Days$119 + $781($4,640$616) ÷ 365 days$900$11= 81

b.

To determine

Identify the company with better liquidity.

Still sussing out bartleby?

Check out a sample textbook solution.

See a sample solution

The Solution to Your Study Problems

Bartleby provides explanations to thousands of textbook problems written by our experts, many with advanced degrees!

Get Started

Chapter 7 Solutions

Financial And Managerial Accounting
Show all chapter solutions
add
Ch. 7 - Internal control elements Identify each of the...Ch. 7 - Items on companys bank statement The following...Ch. 7 - Bank reconciliation The following data were...Ch. 7 - Petty cash fund Prepare journal entries for each...Ch. 7 - Days cash on hand Financial statement data for...Ch. 7 - Sarbanes-Oxley internal control report Using...Ch. 7 - Internal controls Faith Cassen has recently been...Ch. 7 - Internal controls Ramonas Clothing is a retail...Ch. 7 - Internal controls for bank lending Pacific Bank...Ch. 7 - Internal controls One of the largest losses in...Ch. 7 - Internal controls An employee of JHT Holdings,...Ch. 7 - Internal controls All-Around Sound Co. discovered...Ch. 7 - Financial statement fraud A former chairman, CFO,...Ch. 7 - Internal control of cash receipts The procedures...Ch. 7 - Internal control of cash receipts Sergio Flores...Ch. 7 - Internal control of cash receipts The mailroom...Ch. 7 - Entry for cash sales; cash short The actual cash...Ch. 7 - Entry for cash sales; cash over The actual cash...Ch. 7 - Internal control of cash payments Abbe Co. is a...Ch. 7 - Internal control of cash payments Paragon Tech...Ch. 7 - Bank reconciliation Identify each of the following...Ch. 7 - Bank reconciliation Identify each of the following...Ch. 7 - Bank reconciliation The following data were...Ch. 7 - Entries for bank reconciliation Using the data...Ch. 7 - Entries for note collected by bank Accompanying a...Ch. 7 - Bank reconciliation An accounting clerk for...Ch. 7 - Bank reconciliation The following bank...Ch. 7 - Using bank reconciliation to determine cash...Ch. 7 - Petty cash fund entries Journalize the entries to...Ch. 7 - Evaluating internal control of cash The following...Ch. 7 - Transactions for petty cash, cash short and over...Ch. 7 - Bank reconciliation and entries The cash account...Ch. 7 - Bank reconciliation and entries The cash account...Ch. 7 - Bank reconciliation and entries Beeler Furniture...Ch. 7 - Evaluating internal control of cash The following...Ch. 7 - Transactions for petty cash, cash short and over...Ch. 7 - Bank reconciliation and entries The cash account...Ch. 7 - Bank reconciliation and entries The cash account...Ch. 7 - Bank reconciliation and entries Sunshine Interiors...Ch. 7 - Analyze and compare Amazon.com to Netflix...Ch. 7 - Analyze and compare J. C. Penney and Macys J. C....Ch. 7 - Analyze Apache Corporation Apache Corporation...Ch. 7 - Analyze and compare Krispy Kreme and Dunkin Brands...Ch. 7 - Analyze and compare Nike, lululemon, and Under...Ch. 7 - Ethics in Action Tehra Dactyl is an accountant for...Ch. 7 - Bank error During the preparation of the bank...Ch. 7 - Control procedures for self-checkout lanes...Ch. 7 - Internal controlsmerchandise returns The following...

Additional Business Textbook Solutions

Find more solutions based on key concepts
Show solutions add
How can you prevent multimedia presentation software from stealing your thunder?

Essentials of Business Communication (MindTap Course List)

What are the two main causes of market failure? Give an example of each.

Principles of Microeconomics (MindTap Course List)

(Appendix 4B) Describe the difference between producing and support departments.

Managerial Accounting: The Cornerstone of Business Decision-Making

Describe the direct method of reporting cash flows from operating activities.

College Accounting, Chapters 1-27 (New in Accounting from Heintz and Parry)

REPLACEMENT ANALYSIS The Chang Company is considering the purchase of a new machine to replace an obsolete one....

Fundamentals of Financial Management, Concise Edition (with Thomson ONE - Business School Edition, 1 term (6 months) Printed Access Card) (MindTap Course List)