Textbook Problem

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):

	J. C. Penney	Macy’s
Cash (end of year)	$ 119	$1,109
Short term investments (end of year)	781	—
Operating expenses	4,640	8,256
Depreciation expense	616	1,061

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?