MBA 1ST YEAR 1Ans: The liquidity proportions for JC Penney have been computed and are presented in the reference section for the eight quarters spanning from the first quarter of 2011 to the final quarter of the following year (2012). To begin, if we analyse the organization's continuing percentage, we will notice that the organization's ongoing proportion has been constantly falling over the previous eight quarters. This may be noticed by looking at the ongoing proportion. JC Penney maintained a 2.1 times continuing percentage over the first three months of 2011. This proportion was extremely close to what may be considered an ideal proportion for a retailer operating in such a market.Nonetheless, this proportion has been declining since then, and it was at 1.43 times at the conclusion of the final quarter of 2012. Despite the fact that the organization's ongoing resources outnumber its ongoing liabilities, this percentage isn't regarded as high, and the fact that it's been dropping recently may be a subject of concern for JC Penney. Furthermore, if we analyse the trend of the fast percentage, which reflects the extent of the organization's quick resources over the ongoing liabilities, it can be observed that this proportion has also been steadily dropping over the previous eight quarters,with a rapid proportion of 0.83 times in the first quarter of 2011 falling to a quick proportion of 0.52 times in the fourth quarter of 2012. This proportion represents the proportion of the organization's quick resources that are used to pay current liabilities. This demonstrates the organization's shaky ability to manage its money and is rife with severe danger. Furthermore, this indicates that the firm's situation is difficult, or that there is a vital quantity of present resources that cannot be easily converted into cash. Finally, if we look at the company's cash to sales ratio, we can observe that it is also declining. Regardless, it has also met several minor highs and lows between the main and therefore the half-moon of 2012; despite these variations, the general drop throughout this percentage is essential. This is frequently the case, despite the fact that the proportion has been trending downward. In comparison to the ongoing percentage of 24%, the cash to deals proportion in the first quarter of 2011 was 45%. This plainly demonstrates that the company is having difficulties converting its earnings into cash, and as a result, the company is dealing with financial difficulties. In general, each of the three liquidity proportions emphasises how exact market experts' predictions are, and how they represent the organization's, liquidity situation has become really serious. 2. Ans. To have a clear picture of the working capital records, we'll start with the section on current resources and current liabilities. This commitment has stayed mostly consistent throughout, but the available resources have shrunk with time. Both the organization's financial status and its continuing activities have witnessed a serious deterioration in recent days. As a result, there is no way to extract further funds from the partnership.