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                                                                  EXHIBIT 12 (a)
                          J. C. Penney Company, Inc.
                         and Consolidated Subsidiaries

      Computation of Ratios of Available Income to Combined Fixed Charges
                   and Preferred Stock Dividend Requirement

<TABLE>
<CAPTION>




                                                                                                                       53 Weeks
                                                                              52 Weeks Ended                            Ended
                                                       ----------------------------------------------------------------------------
($ Millions)                                             01/25/97       01/27/96        01/28/95       01/29/94        01/30/93
                                                       -------------  --------------  -------------  -------------  ---------------
<S>                                                    <C>           <C>              <C>            <C>            <C>  

Income from continuing operations                        $   853          $ 1,285        $ 1,646         $ 1,498          $ 1,192   
(before income taxes, before                                                                                      
      capitalized interest, but after                                                                                   
      preferred stock dividend)                                                                                         
                                                                                                                        
Fixed charges                                                                                                           
                                                                                                                        
Interest (including capitalized interest) on:                                                                           
                                                                                                                        
      Operating leases                                       110              102             95              97               96
      Short term debt                                        102              129             92              43               43
      Long term debt                                         312              254            225             246              281
      Capital leases                                           6                6              7               9               10
      Other, net                                              14                1             (1)              0               16
                                                         -------          -------        -------         -------          -------
Total fixed charges                                          544              492            418             395              446
                                                                                                                        
Preferred stock dividend, before taxes                        46               48             50              52               53
                                                                                                                        
Combined fixed charges and preferred                                                                                    
                                                         -------          -------        -------         -------          -------
      stock dividend requirement                             590              540            468             447              499
                                                                                                                        
Total available income                                   $ 1,443          $ 1,825        $ 2,114         $ 1,945          $ 1,691
                                                         =======          =======        =======         =======          =======
                                                                                                      
Ratio of available income to combined                                                                                   
      fixed charges and preferred stock                                                                                 
      dividend requirement                                   2.4              3.4            4.5             4.3              3.4
                                                         =======          =======        =======         =======          =======
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The interest cost of the LESOP notes guaranteed by the Company is not included
in fixed charges above.