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Projecting Income, Balance & Cash Flow Statements Need assistance with the last three tabs in the attached EXCEL document: o The 16th tab in your Financia

Projecting Income, Balance & Cash Flow Statements Need assistance with the last three tabs in the attached EXCEL document:

o The 16th tab in your Financia

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Projecting Income, Balance & Cash Flow Statements 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 Corporation’s 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

Shareholder’s 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 shareholder’s equity 6,661,238 6,702,500 6,417,393

Total liabilities and shareholder’s 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

Shareholder’s 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 shareholder’s equity 1,277,731 845,464 693,041

Total liabilities and shareholder’s 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

Ollie’s Income Statements

Ollie’s 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

Ollie’s Balance Sheets

Ollie’s 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

Shareholder’s 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 shareholder’s equity 1,334,881 1,058,885 942,652

Total liabilities and shareholder’s equity $ 2,005,855 $ 1,596,247 $ 1,159,003

Ollie’s Cash Flows

Ollie’s 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 Ollie’s 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 Stockholder’s 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%

Shareholder’s 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 shareholder’s equity 26% 29% 49%

Total liabilities and shareholder’s 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

Shareholder’s 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 shareholder’s equity 6,661,238 (41,262) -1% 6,702,500 285,107 4% 6,417,393

Total liabilities and shareholder’s 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

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