ERGENT: Assume that JC Penney's will experience a $1.5 billion net income loss for 2014 and that the cash balance of $1 billion is required for JC Penny to operstr efficiently. Creat a pro formua sources and uses statement to estimate JC Penny' external funing required by year-end 2013. (similar to 2012 in exhibit 7 in picture)

note: assume stock compensation of 120M is correbt and will be unchanged 2012 to 2013.

EXCEL

Assume that J.C. Penneys will experience a $1.5 billion net income loss for 2013 and that a cash balance of $1.0 billion is required for J.C. Penney to operate efficiently. Create a pro forma sources and uses statement to estimate J.C. Penneys external funding required by year-end 2013.

example of a sources and uses is in the photo

* Note: For Q4, assume Stock Compensation of $120M is correct and will be unchanged 2012 to 2013

464 Part Six Management of the Corporate Capital Structure Sources and Uses of Cash for 2012 in millions of dollars) EXHIBIT 36.7 SOURCES of Cash: USES of Cash $894 $543 $838 $422 $720 $701 $120 Net profit Loss + Comprehensive income/Loss Depreciation Increase/Decrease in net working capital Increase/Decrease in other assets Capital expenditures Decrease/Increase in other and deferred liabilities Net issuance/Retirement of debt Net issuance/Retirement of equity Stock compensation Dividends TOTAL sources/Uses Beginning cash balance + Sources of cash - Uses of cash Ending cash balance $102 $47 $2,482 $1,905 $1.507 $1.905 ($2.482) $930 Source: Case writer estimates. 464 Part Six Management of the Corporate Capital Structure Sources and Uses of Cash for 2012 in millions of dollars) EXHIBIT 36.7 SOURCES of Cash: USES of Cash $894 $543 $838 $422 $720 $701 $120 Net profit Loss + Comprehensive income/Loss Depreciation Increase/Decrease in net working capital Increase/Decrease in other assets Capital expenditures Decrease/Increase in other and deferred liabilities Net issuance/Retirement of debt Net issuance/Retirement of equity Stock compensation Dividends TOTAL sources/Uses Beginning cash balance + Sources of cash - Uses of cash Ending cash balance $102 $47 $2,482 $1,905 $1,507 $1.905 ($2.482) $930 Source: Case writer estimates. 464 Part Six Management of the Corporate Capital Structure Sources and Uses of Cash for 2012 in millions of dollars) EXHIBIT 36.7 SOURCES of Cash: USES of Cash $894 $543 $838 $422 $720 $701 $120 Net profit Loss + Comprehensive income/Loss Depreciation Increase/Decrease in net working capital Increase/Decrease in other assets Capital expenditures Decrease/Increase in other and deferred liabilities Net issuance/Retirement of debt Net issuance/Retirement of equity Stock compensation Dividends TOTAL sources/Uses Beginning cash balance + Sources of cash - Uses of cash Ending cash balance $102 $47 $2,482 $1,905 $1.507 $1.905 ($2.482) $930 Source: Case writer estimates. 464 Part Six Management of the Corporate Capital Structure Sources and Uses of Cash for 2012 in millions of dollars) EXHIBIT 36.7 SOURCES of Cash: USES of Cash $894 $543 $838 $422 $720 $701 $120 Net profit Loss + Comprehensive income/Loss Depreciation Increase/Decrease in net working capital Increase/Decrease in other assets Capital expenditures Decrease/Increase in other and deferred liabilities Net issuance/Retirement of debt Net issuance/Retirement of equity Stock compensation Dividends TOTAL sources/Uses Beginning cash balance + Sources of cash - Uses of cash Ending cash balance $102 $47 $2,482 $1,905 $1,507 $1.905 ($2.482) $930 Source: Case writer estimates