Fluent Essays

Need assistance with the last three tabs in the attached EXCEL document: o The 16th tab in your Financial Statement Analysis Template must be labeled Projected Income Statements. Three years of projected statements should be included, starting with the most recent year after the company’s last issued report.  o The 17th tab in your Financial Statement Analysis Template must be labeled Projected Balance Sheets. Three years of projected statements should be included. Three years of projected statements should be included, starting with the most recent year after the company’s last issued report.  o The 18th tab in your Financial Statement Analysis Template must be labeled Projected Statement of Cash Flows. Three years of projected statements should be included, starting with the most recent year after the company’s last issued report.  Other information relating to projected tabs: Projections should be based on research performed on your company and its industry. Use historical, trend, ratio data and current and future economic projections as well as information from the company’s MD&A to aid in preparing projections. Clearly state your assumptions in a text box at the bottom of each tab. Cite sources for assumptions based on research.  The statements should be consistent, reasonable, and accurate. Areas that will be checked for accuracy include: · The Balance Sheets should balance for all years presented. · Retained earnings should be properly calculated using the prior year’s balance, net income, and dividends. · The Ending Cash Balance on the Statement of Cash Flows should agree to the Cash Balance shown on the Balance Sheet for the same year. · Net Income on the Income Statements should match what is reported on the top of the Statement of Cash Flows (if indirect method is used). Company Information ACCT 370 Excel Project Dollar General Corporation 100 Mission Ridge, Goodlettsville, TN 37072 Jennifer Edmonds Company Name Dollar General Corporation Ticker Symbol DG Industry Discount Retailer Products and Services Offered Dollar General offers a broad selection of merchandise, including consumable items, seasonal items, home products and apparel. Brands sold include national brads and private brand selections at every day low prices. Major Competitors Dollar General Corporations main competitors are Family Dollar, Dollar Tree, Big Lots, 99 Cents Only Historical Income Statements Dollar General Corporation Consolidated Income Statement As of January 29, 2021, January 31, 2020, and February 1, 2019 $s in thousands, expect per share amounts For the Year Ended January 29, 2021 January 31, 2020 February 1, 2019 Net Sales $ 33,746,839 $ 27,753,973 $ 25,625,043 Cost of goods sold $ 23,027,977 $ 19,264,912 $ 17,821,173 Gross profit $ 10,718,862 $ 8,489,061 $ 7,803,870 Selling, general and administrative expenses $ 7,164,097 $ 6,186,757 $ 5,687,564 Operating profit $ 3,554,765 $ 2,302,304 $ 2,116,306 Interest expense $ 150,385 $ 100,574 $ 99,871 Other (income) expense $ - 0 $ - 0 $ 1,019 Income before income taxes $ 3,404,380 $ 2,201,730 $ 2,015,416 Income tax expense $ 749,330 $ 489,175 $ 425,944 Net income $ 2,655,050 $ 1,712,555 $ 1,589,472 Earnings per share: Basic $ 10.70 $ 6.68 $ 5.99 Dilute $ 10.62 $ 6.64 $ 5.97 Weighted average shares outstanding: Basic 248,171 256,533 265,155 Dilute 250,076 258,053 266,105 Dividends per share $ 1.44 $ 1.28 $ 1.16 Historical Balance Sheets Dollar General Corporation Consolidated Balance Sheets As of January 29, 2021, January 31, 2020, and February 1, 2019 $s in thousands, expect per share amounts For the Year Ended January 29, 2021 January 31, 2020 February 1, 2019 ASSETS Current assets: Cash and cash equivalents $ 1,376,577 $ 240,320 $ 235,487 Merchandise inventoires 5,247,477 4,676,848 4,097,004 Income tax receivable 90,760 76,537 57,804 Prepaid expenses and other current assets 199,405 184,163 272,725 Total current assets 6,914,219 5,177,868 4,663,020 Net property and equipment 3,899,997 3,278,359 2,970,806 Operating lease assets 9,473,330 8,796,183 - Goodwill 4,338,589 4,338,589 4,338,589 Other intangible assets, net 1,199,870 1,200,006 1,200,217 Other assets, net 69,619 34,079 31,406 Total assets 25,895,624 22,825,084 13,204,038 LIABILITIES AND SHAREHOLDERS EQUITY Current liabilities: Current portion of long-term obligation - 0 - 0 1,950 Current portion of operating lease liabilities $ 1,074,079 $ 964,805 $ - Accounts payable 3,614,089 2,860,682 2,385,469 Accured expenses and other 1,006,552 709,156 618,405 Income taxes payable 16,063 8,362 10,033 Total current liabilities 5,710,783 4,543,005 3,015,857 Long-term obligations 4,130,975 2,911,993 2,862,740 Long-term operating lease liabilities 8,385,388 7,819,683 - 0 Deffered income taxes 710,549 675,227 609,687 Other liabilities 263,691 172,676 298,361 Commitments and contingencies Shareholders equity: Preferred stock - 0 - 0 - 0 Common stock: $0.875 per value, 1,000,000 shares authorized, 240,785; 251,936; and 259,511 shares issued and outstanding at January 29, 2021, January 31, 2020, and February 1, 2019 respectively 210,687 220,444 227,072 Additional paid-in capital 3,446,612 3,322,531 3,252,421 Retained earnings 3,006,102 3,162,660 2,941,107 Accummulated other comprehensive loss (2,163) (3,135) (3,207) Total shareholders equity 6,661,238 6,702,500 6,417,393 Total liabilities and shareholders equity 25,862,624 22,825,084 13,204,038 Hist. Statement of Cash Flows Dollar General Corporation Consolidated Statements of Cash Flows As of January 29, 2021, January 31, 2020, and February 1, 2019 $s in thousands, expect per share amounts For the Year Ended January 29, 2021 January 31, 2020 February 1, 2019 Cash flows from operating activities: Net income $ 2,655,050 $ 1,712,555 $ 1,589,472 Adjustments to reconcile net income to net cash from operating activities: Depreciation and amortization 574,237 504,804 454,134 Deferred income taxes 34,976 55,407 52,325 Noncash share-based compensation 68,609 48,589 40,879 Other noncash (gains) and losses 11,570 8,293 42,870 Change in operating assets and liabilities: Merchandise inventories (575,827) (578,783) (521,342) Prepaid expenses and other current assets (16,516) (14,453) (12,097) Accounts payable 745,596 428,627 375,214 Accrued expenses and other liabilities 388,597 100,322 65,857 Income taxes (6,522) (20,404) 56,390 Other noncash (gains) and losses (3,611) (6,959) (152) Net cash provided by (used in) operating activities 3,876,159 2,237,998 2,143,550 Cash flows from investing activities: Purchases of property and equipment (1,027,963) (784,843) (734,380) Proceeds from sales of property and equipment 3,053 2,358 2,777 Net cash provided by (used in) investing activities (1,024,910) (782,485) (731,603) Cash flows from financing activities: Issuance of long-term obligations 1,494,315 - 499,495 Repayments of long-term obligation (4,640) (1,465) (577,321) Net increase (decrease) in commercial paper outstanding (425,200) 58,300 (63,300) Borrowings under revolving credit facilities 300,000 - - Repayments of borrowings under revolving credit facilities (300,000) - - Costs associated with issuance of debt (13,574) (1,675) (4,384) Repurchases of common stock (2,466,434) (1,200,376) (1,007,494) Payments of cash dividends (355,926) (327,568) (306,523) Other equity and related transactions 56,467 22,104 15,626 Net cash proivded by (used in) financing activities (1,714,992) (1,450,680) (1,443,901) Net increase (decrease) in cash and cash equivalments 1,136,257 4,833 (31,954) Cash and cash equivalents, beginning of period 240,320 235,487 267,411 Cash and cash equivalents, end of period $ 1,376,577 $ 240,320 $ 235,457 Supplemental cash flow information: Cash paid for: Interest $ 128,211 $ 100,033 $ 98,012 Income taxes $ 721,570 $ 457,119 $ 313,457 Supplemental noncash investing and financing activities: Right of use assets obtained in exchange for new operating lease liabilities $ 1,721,530 $ 1,705,988 Purchases of property and equipment awaiting processing for payment, included in Accounts payable $ 118,059 $ 100,248 $ 63,662 Big Lots Income Statements Big Lots, Inc. Consolidated Income Statement As of 2020, 2019, and 2018 $s in thousands, expect per share amounts For the Year Ended 2020 2019 2018 Net Sales $ 6,199,186 $ 5,323,180 $ 5,238,105 Cost of goods sold 3,701,800 3,208,498 3,116,210 Gross margin 2,497,386 2,114,682 2,121,895 Selling, general and administrative expenses 1,965,555 1,823,409 1,778,416 Depreciation expense 138,336 134,981 124,970 Gain on sale of distribution centers (463,053) (178,534) - Operating profit 856,548 334,826 218,509 Interest expense (11,031) (16,827) (10,338) Other (income) expense (911) (451) (558) Income before income taxes 844,606 317,548 207,613 Income tax expense 215,415 75,084 50,719 Net income $ 629,191 $ 242,464 $ 156,894 Earnings per share: Basic $ 16.46 $ 6.18 $ 3.84 Dilute $ 16.11 $ 6.16 $ 3.83 Big Lots Balance Sheets Big Lots, Inc. Consolidated Balance Sheets As of January 30, 2021, February 1, 2020, and February 2, 2019 $s in thousands, expect per share amounts For the Year Ended January 30, 2021 February 1, 2020 February 2, 2019 ASSETS Current assets: Cash and cash equivalents $ 559,556 $ 52,721 $ 46,034 Inventories 940,294 921,266 969,561 Other current assets 85,939 89,962 112,408 Total current assets 1,585,789 1,063,949 1,128,003 Operating lease right-of-use assets 1,649,009 1,202,252 - Property and equipment - net 717,216 849,147 822,338 Deferred income taxes 16,329 4,762 8,633 Other assets 68,914 69,171 64,373 Total assets 4,037,257 3,189,281 2,023,347 LIABILITIES AND SHAREHOLDERS EQUITY Current liabilities: Accounts payable $ 398,433 $ 378,241 $ 396,903 Current operating lease liabilities 226,075.0 212,144.0 -0 Property, payroll, and other taxes 109,694.0 82,109.0 75,317.0 Accrued operating expenses 138,331.0 118,973.0 99,422.0 Insurance reserves 34,660.0 36,131.0 38,883.0 Accrued salaries and wages 49,830.0 39,292.0 26,798.0 Income taxes payable 43,601.0 3,930.0 1,237.0 Total current liabilities 1,000,624 870,820 638,560 Long-term debt 35,764 279,464 374,100 Noncurrent operating lease liabilities 1,465,433 1,035,377 - 0 Deferred income taxes 7,762 48,610 - 0 Deferred rent - 0 - 0 60,700 Insurance reserves 57,452 57,567 54,507 Unrecognized tax benefits 11,304 10,722 14,189 Synthetic lease obligation - 0 - 0 144,477 Other liabilities 181,187 41,257 43,773 Shareholders equity: Preferred stock - 0 - 0 - 0 Common shares - authorized 298,000 shares; $0.01 par value; issued 117,495 shares; outstanding 35,535 shares, 39,037 shares, and 40,042 shares respectively 1,175 1,175 1,175 Treasury shares - 81,960 shares, 78,458 shares, and 77,453 shares, respectively, at cost (2,709,259) (2,546,232) (2,506,086) Additional paid-in capital 634,813 620,728 622,685 Retained earnings 3,351,002 2,769,793 2,575,267 Total shareholders equity 1,277,731 845,464 693,041 Total liabilities and shareholders equity 4,037,257 3,189,281 2,023,347 Big Lots Cash Flows Big Lots, Inc. Consolidated Statements of Cash Flows As of 2020, 2019, and 2018 $s in thousands, expect per share amounts For the Year Ended 2020 2019 2018 Operating activities: Net income $ 629,191 $ 242,464 $ 156,894 Adjustmnets to reconcile net income to net cash from operating activities: Depreciation and amortization expense 138,848 135,686 114,025 Non-cash lease expense 246,442 229,143 - Deferred income tax (52,415) 52,374 5,353 Non-cash share-based compensation expense 26,155 13,051 26,335 Non-cash impairment charge 1,792 3,986 141 (Gain) loss on disposition of property and equipment (462,916) (177,996) 732 Unrealized (gain) loss on fuel derivatives (294) 346 1,075 Change in assests and liabilities: Inventories (19,028) 48,295 (96,772) Accounts payable 20,193 (18,662) 45,677 Operating lease liabilities (250,131) (215,956) - Current income taxes 56,564 (4,442) (14,108) Other current assets (10,238) (5,836) (7,055) Other current liabilities 55,775 36,962 (11,637) Other assets (90) (5,499) 1,985 Other liabilities 19,501 5,054 11,415 Net cash provided by (used in) operating activities $ 399,349 338,970 234,060 Investing activities: Capital expenditures (135,220) (265,203) (232,402) Cash proceeds from sale of property and equipment 588,258 190,741 519 Assets acquired under synthetic lease - - (128,872) Payments for purchase of intangible assets - - (15,750) Other (51) (18) 32 Net cash provided by (used in) investing activities 452,987 (74,480) (376,473) Financing activities: Net (repayment of) proceeds from long-term debt (243,227) (80,609) 174,300 Net financing proceeds from sale and leaseback 123,435 - - Payment of finance lease obligations (3,648) (73,469) (3,908) Dividends paid (46,964) (48,421) (50,608) Proceeds from the exercise of stock options 493 200 1,859 Payment for treasury shares acquired (175,642) (55,347) (111,750) Proceeds from synthetic lease - - 128,872 Payments for debt issurance costs - (150) (1,495) Other 52 (7) 1 Net cash proivded by (used in) financing activities (345,501) (257,803) 137,271 Increase (decrease) in cash and cash equivalents 506,835 6,687 (5,142) Cash and cash equivalents: Beginning of year 52,721 46,034 51,176 End of year $ 559,556 $ 52,721 $ 46,034 Ollies Income Statements Ollies Bargin Outlet Holdings, Inc. Consolidated Income Statement As of January 30, 2021, February 1, 2020, February 2, 2019 $s in thousands, expect per share amounts For the Year Ended January 30, 2021 February 1, 2020 February 2, 2019 Net Sales $ 1,808,821 $ 1,408,199 $ 1,241,377 Cost of sales 1,085,455 852,610 743,726 Gross profit 723,366 555,589 497,651 Selling, general and administrative expenses 418,889 356,060 312,790 Depreciation and amortization expenses 16,705 14,582 11,664 Pre-opening expenses 10,272 13,092 11,143 Operating profit 277,500 171,855 162,054 Interest (income) expense, net (278) (878) 1,261 Loss on extinguishment of debt - - 150 Income before income taxes 277,778 172,733 160,643 Income tax expense 35,082 31,603 25,630 Net income $ 242,696 $ 141,130 $ 135,013 Earnings per share: Basic $ 3.75 $ 2.23 $ 2.60 Dilute $ 3.68 $ 2.14 $ 2.05 Weighted average common shares outstanding: Basic 64,748 63,214 62,568 Diluted 68,873 65,874 65,905 Ollies Balance Sheets Ollies Bargin Outlet Holdings, Inc. Consolidated Balance Sheets As of January 30, 2021, February 1, 2020, February 2, 2019 $s in thousands, expect per share amounts For the Year Ended January 30, 2021 February 1, 2020 February 2, 2019 ASSETS Current assets: Cash and cash equivalents $ 447,126 $ 89,950 $ 51,941 Inventories $ 353,704 $ 335,181 $ 296,407 Accounts receivable $ 621 $ 2,840 $ 570 Prepaid expenses and other assets $ 7,316 $ 5,567 $ 9,579 Total current assets $ 808,767 $ 433,538 $ 358,497 Property and equipment, net $ 138,712 $ 132,084 $ 119,052 Operating lease right -of-use assets $ 380,546 $ 352,684 $ - 0 Goodwill $ 444,850 $ 444,850 $ 444,850 Trade name $ 230,559 $ 230,559 $ 232,304 Other assets $ 2,421 $ 2,532 $ 4,300 Total assets $ 2,005,855 $ 1,596,247 $ 1,159,003 LIABILITIES AND SHAREHOLDERS EQUITY Current liabilities: Current portion of long-term debt $ 328 $ 273 $ 238 Accounts payable 117,217 63,223 77,431 Income taxes payable 10,960 3,906 7,393 Current portion of operating lease liabilities 64,732 53,551 - Accrued expenses and other 90,559 56,732 65,934 Total current liabilities 283,796 177,685 150,996 Revolving credit facility - - - Long-term debt 656 527 441 Deferred income taxes 65,064 59,401 55,616 Long-term operating expense liabilities 321,454 299,743 - Other long-term liabilities 4 6 9,298 Total liabilities 670,974 537,362 216,351 Commitments and contingencies Shareholders equity: Preferred stock - 50,000 shares authorized at $0.001 par value; no shares issued - - - Common stock - 500,000 shares authorized at $0.001 par value; 66,165, 63,712, and 63,015 shares issued, respectively 66 64 63 Additional paid-in capital 648,949 615,350 600,234 Retained earnings 726,267 483,571 342,441 Treasury - common stock at cost; 702, 698, and 9 shares, respectively (40,401) (40,100) (86) Total shareholders equity 1,334,881 1,058,885 942,652 Total liabilities and shareholders equity $ 2,005,855 $ 1,596,247 $ 1,159,003 Ollies Cash Flows Ollies Bargin Outlet Holdings, Inc. Consolidated Statements of Cash Flows As of January 30, 2021, February 1, 2020, February 2, 2019 $s in thousands, expect per share amounts For the Year Ended January 30, 2021 February 1, 2020 February 2, 2019 Cash flows from operating activities: Net income $ 141,130 $ 135,013 $ 127,594 Adjustmnets to reconcile net income to net cash from operating activities: Depreciation and amortization of property and equipment 17,543 14,008 11,923 Amoritization of debt-issuance costs 296 482 640 Amoritization of original issue discount - 5 17 Loss on extinguishment of debt - 150 798 Amoritization of intangibles - 335 338 Gain on sale of assets (74) (48) (29) Deferred income tax provision (benefit) 3,785 (1,568) (30,323) Deferred rent expense - 1,590 1,920 Stock-based compensation expense 7,302 7,291 7,413 Changes in operating assets and liabilities: Inventories (38,774) (41,222) (45,078) Accounts receivable (2,270) 701 (970) Prepaid expenses and other assets (870) (4,163) (4,424) Accounts payable (15,513) 3,564 22,955 Income tax payable (3,487) 1,358 1,487 Accrued expenses and other liabilities (3,724) 8,583 1,675 Net cash provided by operating activities 105,344 126,079 95,936 Cash flows from investing activities: Purchases of property and equipment (76,979) (74,178) (19,285) Proceeds from sale of property and equipment 42,855 330 128 Net cash provided by (used in) investing activities (34,124) (73,848) (19,157) Cash flows from financing activities: Repayments on term loan and capital leases (460) (49,001) (146,422) Payment of debt issuance costs (552) - - Proceeds from stock option exercises 9,087 10,179 10,413 Common shares withheld for taxes (1,272) (702) (219) Payment for shares repurchased (40,014) - - Net cash used in financing activities (33,211) (39,524) (136,228) Net increase (decrease) in cash and cash equivalments 38,009 12,707 (59,449) Cash and cash equivalents, beginning of period 51,941 39,234 98,683 Cash and cash equivalents, end of period $ 89,950 $ 51,941 $ 39,234 Supplemental cash flow information: Cash paid for: Interest $ 335 $ 807 $ 3,806 Income taxes $ 30,857 $ 26,112 $ 31,949 Non-cash transactions Accrued purchases of property and equipment $ 4,562 $ 5,735 $ 1,925 Historical & Competitor Ratios Dollar General Corporation COMPETITOR RATIO ANALYSIS Historial Ratios For the years ended January 29, 2021, January 31, 2020, and February 1, 2019 2021 2020 2019 Big Lots Ollies Bargin Outlet Industry Average Liquidity Current Ratio 1.21 1.14 1.55 1.58 2.85 1.27 Quick Ratio 0.24 0.05 0.08 0.56 1.58 0.54 Leverage Ratios Debt to Total Assets Ratio 0.16 0.13 0.22 0.01 0.00 Debt to Equity Ratio 0.26 0.29 0.49 0.32 0.67 0.06 Long-Term Debt to Equity 0.62 0.43 0.45 0.03 0.00 Times Interest Earned Ratio 4.54 4.50 4.73 3.92 7.92 Activity Ratios Inventory Turnover 3.04 2.86 3.02 2.64 2.08 8.35 Fixed Assets Turnover 6.09 5.83 5.93 5.43 8.83 4.40 Total Assets Turnover 1.30 1.22 1.94 1.54 0.90 2.13 Accounts Receivable Turnover Average Collection Period Profitability Ratios Gross Profit Margin 31.76\% 30.59\% 30.45\% 40.29\% 39.99\% 19.45\% Operating Profit Margin 10.53\% 8.30\% 8.26\% 13.82\% 15.34\% 4.39\% Net Profit Margin 7.87\% 6.17\% 6.20\% 10.15\% 13.42\% 2.81\% Return on Total Assets (ROA) 10.25\% 7.50\% 12.04\% 15.58\% 12.10\% 8.07\% Return on Stockholders Equity 39.86\% 25.55\% 24.77\% 49.24\% 18.18\% 30.05\% Earnings Per Share (EPS) 10.70 6.68 5.99 17.71 3.75 2.97 Price Earnings Ratio Footnote: https://www.readyratios.com/sec/industry/5311/ https://csimarket.com/Industry/industry_ManagementEffectiveness.php?ind=1303 Common Sized Balance Sheets Dollar General Corporation Common Sized Balance Sheets As of January 29, 2021, January 31, 2020, and February 1, 2019 For the Year Ended January 29, 2021 January 31, 2020 February 1, 2019 ASSETS Current assets: Cash and cash equivalents 5\% 1\% 2\% Merchandise inventoires 20\% 20\% 31\% Income tax receivable 0\% 0\% 0\% Prepaid expenses and other current assets 1\% 1\% 2\% Total current assets 27\% 23\% 35\% Net property and equipment 15\% 14\% 22\% Operating lease assets 37\% 39\% 0\% Goodwill 17\% 19\% 33\% Other intangible assets, net 5\% 5\% 9\% Other assets, net 0\% 0\% 0\% Total assets 100\% 100\% 100\% LIABILITIES AND SHAREHOLDERS EQUITY Current liabilities: Current portion of long-term obligation 0\% 0\% 0\% Current portion of operating lease liabilities 4\% 4\% 0\% Accounts payable 14\% 13\% 18\% Accured expenses and other 4\% 3\% 5\% Income taxes payable 0\% 0\% 0\% Total current liabilities 22\% 20\% 23\% Long-term obligations 16\% 13\% 22\% Long-term operating lease liabilities 32\% 34\% 0\% Deffered income taxes 3\% 3\% 5\% Other liabilities 1\% 1\% 2\% Commitments and contingencies 0\% 0\% 0\% Shareholders equity: 0\% 0\% 0\% Preferred stock 0\% 0\% 0\% Common stock: $0.875 per value, 1,000,000 shares authorized, 240,785; 251,936; and 259,511 shares issued and outstanding at January 29, 2021, January 31, 2020, and February 1, 2019 respectively 1\% 1\% 2\% Additional paid-in capital 13\% 15\% 25\% Retained earnings 12\% 14\% 22\% Accummulated other comprehensive loss -0\% -0\% -0\% Total shareholders equity 26\% 29\% 49\% Total liabilities and shareholders equity 100\% 100\% 100\% Common Sized Income Sheets Dollar General Corporation Common Sized Income Sheets As of January 29, 2021, January 31, 2020, and February 1, 2019 For the Year Ended January 29, 2021 January 31, 2020 February 1, 2019 Net Sales 100\% 100\% 100\% Cost of goods sold 68\% 69\% 70\% Gross profit 32\% 31\% 30\% Selling, general and administrative expenses 21\% 22\% 22\% Operating profit 11\% 8\% 8\% Interest expense 0\% 0\% 0\% Other (income) expense 0\% 0\% 0\% Income before income taxes 10\% 8\% 8\% Income tax expense 2\% 2\% 2\% Net income 8\% 6\% 6\% Horizontal Analysis of Balance Dollar General Corporation Horizontal Analysis Balance Sheets As of January 29, 2021, January 31, 2020, and February 1, 2019 For the Year Ended January 29, 2021 $ Change \% Change January 31, 2020 $ Change \% Change February 1, 2019 ASSETS Current assets: Cash and cash equivalents $ 1,376,577 $ 1,136,257 473\% $ 240,320 $ 4,833 2\% $ 235,487 Merchandise inventoires 5,247,477 570,629 12\% 4,676,848 579,844 14\% 4,097,004 Income tax receivable 90,760 14,223 19\% 76,537 18,733 32\% 57,804 Prepaid expenses and other current assets 199,405 15,242 8\% 184,163 (88,562) -32\% 272,725 Total current assets 6,914,219 1,736,351 34\% 5,177,868 514,848 11\% 4,663,020 Net property and equipment 3,899,997 621,638 19\% 3,278,359 307,553 10\% 2,970,806 Operating lease assets 9,473,330 677,147 8\% 8,796,183 8,796,183 - - Goodwill 4,338,589 - 0\% 4,338,589 - 0\% 4,338,589 Other intangible assets, net 1,199,870 (136) -0\% 1,200,006 (211) -0\% 1,200,217 Other assets, net 69,619 35,540 104\% 34,079 2,673 9\% 31,406 Total assets 25,895,624 3,070,540 13\% 22,825,084 9,621,046 73\% 13,204,038 LIABILITIES AND SHAREHOLDERS EQUITY Current liabilities: Current portion of long-term obligation - 0 - 0 - 0 - 0 (1,950) -100\% 1,950 Current portion of operating lease liabilities $ 1,074,079 $ 109,274 11\% $ 964,805 $ 964,805 $ - Accounts payable 3,614,089 753,407 26\% 2,860,682 475,213 20\% 2,385,469 Accured expenses and other 1,006,552 297,396 42\% 709,156 90,751 15\% 618,405 Income taxes payable 16,063 7,701 92\% 8,362 (1,671) -17\% 10,033 Total current liabilities 5,710,783 1,167,778 26\% 4,543,005 1,527,148 51\% 3,015,857 Long-term obligations 4,130,975 1,218,982 42\% 2,911,993 49,253 2\% 2,862,740 Long-term operating lease liabilities 8,385,388 565,705 7\% 7,819,683 7,819,683 - 0 Deffered income taxes 710,549 35,322 5\% 675,227 65,540 11\% 609,687 Other liabilities 263,691 91,015 53\% 172,676 (125,685) -42\% 298,361 Commitments and contingencies Shareholders equity: Preferred stock - 0 - 0 - 0 - 0 - 0 - 0 - 0 Common stock: $0.875 per value, 1,000,000 shares authorized, 240,785; 251,936; and 259,511 shares issued and outstanding at January 29, 2021, January 31, 2020, and February 1, 2019 respectively 210,687 (9,757) -4\% 220,444 (6,628) -3\% 227,072 Additional paid-in capital 3,446,612 124,081 4\% 3,322,531 70,110 2\% 3,252,421 Retained earnings 3,006,102 (156,558) -5\% 3,162,660 221,553 8\% 2,941,107 Accummulated other comprehensive loss (2,163) 972 -31\% (3,135) 72 -2\% (3,207) Total shareholders equity 6,661,238 (41,262) -1\% 6,702,500 285,107 4\% 6,417,393 Total liabilities and shareholders equity 25,862,624 3,037,540 13\% 22,825,084 9,621,046 73\% 13,204,038 Horizontal Analysis of Income Dollar General Corporation Horizontal Analysis Income Statement As of January 29, 2021, January 31, 2020, and February 1, 2019 $s in thousands, expect per share amounts For the Year Ended January 29, 2021 $ Change \% Change January 31, 2020 $ Change \% Change February 1, 2019 Net Sales $ 33,746,839 $ 5,992,866 22\% $ 27,753,973 $ 2,128,930 8\% $ 25,625,043 Cost of goods sold $ 23,027,977 $ 3,763,065 20\% $ 19,264,912 $ 1,443,739 8\% $ 17,821,173 Gross profit $ 10,718,862 $ 2,229,801 26\% $ 8,489,061 $ 685,191 9\% $ 7,803,870 Selling, general and administrative expenses $ 7,164,097 $ 977,340 16\% $ 6,186,757 $ 499,193 9\% $ 5,687,564 Operating profit $ 3,554,765 $ 1,252,461 54\% $ 2,302,304 $ 185,998 9\% $ 2,116,306 Interest expense $ 150,385 $ 49,811 50\% $ 100,574 $ 703 1\% $ 99,871 Other (income) expense $ - 0 $ (1,019) -100\% $ 1,019 Income before income taxes $ 3,404,380 $ 1,202,650 55\% $ 2,201,730 $ 186,314 9\% $ 2,015,416 Income tax expense $ 749,330 $ 260,155 53\% $ 489,175 $ 63,231 15\% $ 425,944 Net income $ 2,655,050 $ 942,495 55\% $ 1,712,555 $ 123,083 8\% $ 1,589,472 Earnings per share: Basic $ 10.70 $ 4.02 60\% $ 6.68 $ 0.69 12\% $ 5.99 Dilute $ 10.62 $ 3.98 60\% $ 6.64 $ 0.67 11\% $ 5.97 Weighted average shares outstanding: Basic 248,171 $ (8,362.00) -3\% 256,533 $ (8,622.00) -3\% 265,155 Dilute 250,076 $ (7,977.00) -3\% 258,053 $ (8,052.00) -3\% 266,105 Dividends per share $ 1.44 $ 0.16 13\% $ 1.28 $ 0.12 10\% $ 1.16 Projected Income Statements Dollar General Corporation Projected Income Statement As of January 29, 2021, January 31, 2020, and February 1, 2019 $s in thousands, expect per share amounts For the Year Ended January 29, 2022 January 29, 2023 January 29, 2024 Net Sales $ 35,197,953 $ 36,605,871 $ 38,033,500 Cost of goods sold $ 23,582,629 $ 24,159,875 $ 24,721,775 Gross profit $ 11,615,325 $ 12,445,996 $ 13,311,725 Selling, general and administrative expenses $ 7,472,153 $ 6,434,227 $ 5,909,379 Operating profit $ 4,143,171 $ 6,011,769 $ 7,402,346 Interest expense $ 94,706 $ 94,706 $ 94,706 Other (income) expense $ - 0 $ - 0 $ - 0 Income before income taxes $ 4,048,465 $ 5,917,063 $ 7,307,640 Income tax expense $ 661,722 $ 688,190 $ 715,030 Net income $ 3,386,743 $ 5,228,872 $ 6,592,610 Assumptions: 1. Net Sales: According to Dun & Bradstreet, Dollar & Other General Merchandise Stores will have an average revenue growth of 4.3\% in 2022, 4.0\% in 2023 and 3.9\% in 2024. (General Merchandise and Variety Stores, Dollar Stores, Departments Stores and Warehouse Clubs Industry (U.S.) Analytics, Extensive Financial Benchmarks, Metrics and Revenue Forecasts to 2027, p. 13) 2. COGS: Average over the last three years has decreased by 1\% each year. 3. SG&A can be forecasted as the same rate as the revenue growth. 4. Interest Expense: Interest expense increased $49.8 million to $150.4 million in 2020 compared to 2019, primarily due to higher average outstanding debt balances in connection with the issuance of debt in the first quarter of 2020, and increased $0.7 million to $100.6 million in 2019 compared to 2018. 284,119 (in thousands) are due in the next 1-3 years. Average is $94,706.33. (“United States Securities and Exchange Commission - Dollar General Corporation”, p. 36) 5. Taxes: Used average over the last three years = 1.88\% of net sales according to the Common Sized Income Statement percentages. 6. Dollar General plans to increase stores by 6\% each year. References General Merchandise and Variety Stores, Dollar Stores, Departments Stores and Warehouse Clubs Industry (U.S.) Analytics, Extensive Financial Benchmarks, Metrics and Revenue Forecasts to 2027, NAIC 452000 Published May 26, 2021. (2021). (). Houston: Plunkett Research, Ltd. Retrieved from Entrepreneurship Database; ProQuest Central http://ezproxy.liberty.edu/login?qurl=https\%3A\%2F\%2Fwww.proquest.com\%2Freports\%2Fgeneral-merchandise-variety-stores-dollar\%2Fdocview\%2F2537157230\%2Fse-2\%3Faccountid\%3D12085 “United States Securities and Exchange Commission - Dollar General Corporation.” Sec.gov, 29 Jan. 2021, www.sec.gov/ix?doc=/Archives/edgar/data/29534/000155837021003245/dg-20210129x10k.htm#ITEM7MANAGEMENTSDISCUSSIONANDANALYSIS_58. Accessed 7 Aug. 2021. Other Research: Corporate Finance Academy. “Income Statement Forecasting - How to Do a 5 Year Forecast in Excel.” YouTube, 26 Nov. 2020, www.youtube.com/watch?v=6FMPZCMoAKY. Accessed 7 Aug. 2021. Projected Balance Sheets Dollar General Corporation Projected Balance Sheets As of January 29, 2021, January 31, 2020, and February 1, 2019 $s in thousands, expect per share amounts For the Year Ended January 29, 2022 January 29, 2023 January 29, 2024 ASSETS Current assets: Cash and cash equivalents $ 1,401,351 $ 1,457,405 $ 1,514,244 Merchandise inventoires 5,473,119 5,692,043 5,914,033 Income tax receivable 94,663 98,449 102,289 Prepaid expenses and other current assets 207,979 216,299 224,734 Total current assets 7,177,112 7,464,196 7,755,300 Net property and equipment 4,067,697 4,230,405 4,395,391 Operating lease assets 9,880,683 10,275,911 10,676,671 Goodwill 4,525,148 4,706,154 4,889,694 Other intangible assets, net 1,251,464 1,301,523 1,352,282 Other assets, net 72,613 75,517