<PAGE>

                                                                  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>
                                                          52 Weeks       52 Weeks       52 Weeks       53 Weeks        52 Weeks
                                                           Ended          Ended          Ended           Ended          Ended
($ Millions)                                              01/27/01       01/29/00       01/30/99       01/31/98        01/25/97
                                                         -----------    -----------   ------------    ------------    -----------
<S>                                                      <C>            <C>           <C>             <C>             <C>
Income from continuing operations                             $ (920)       $   237        $   674         $   647        $   660
    (before income taxes, before
    capitalized interest, but after
    preferred stock dividend)

Fixed charges

Interest (including capitalized interest) on:

    Operating leases                                             320            272            225             180            110
    Short term debt                                               13            137            106             121            102
    Long term debt                                               464            538            557             527            312
    Capital leases                                                 3              2              4               7              6
    Other, net                                                     2             (5)             1              (5)            14
                                                         -----------    -----------   ------------    ------------    -----------
Total fixed charges                                              802            944            893             830            544

Preferred stock dividend, before taxes                            33             36             37              40             46
                                                         -----------    -----------   ------------    ------------    -----------
Combined fixed charges and preferred
    stock dividend requirement                                   835            980            930             870            590

Total available income                                        $  (85)       $ 1,217        $ 1,604         $ 1,517        $ 1,250
                                                         ===========    ===========   ============    ============    ===========
Ratio of available income to combined
    fixed charges and preferred stock
    dividend requirement                                           *            1.2            1.7             1.7            2.1
                                                         ===========    ===========   ============    ============    ===========
</TABLE>

The interest cost of the LESOP notes guaranteed by the Company is not included
in fixed charges above. The LESOP notes were repaid in July 1998.

* Income from continuing operations (before income taxes, before capitalized
  interest, but after preferred stock dividend) was not sufficient to cover
  combined fixed charges and preferred stock dividend by $920 million.