Question

INVENTORY RESEARCH EXERCISE

Examine the annual report (form 10-K) of one of the following companies and answer the following five questions. Highlight the company you selected. Use the space below each question to complete your answer.

• Big Lots, Inc.
• Burlington Stores, Inc.
• Dollar General Corp.
• Target Corp.
• Wal-Mart Stores, Inc.

You may find the information by going to the company’s website and selecting the link for “Investor Relations.” Look for Annual Reports or Form 10-K. You may also go to www.sec.gov and search for the company. You should look for Form 10-K.

1. Calculate the percentage increase or decrease of net sales in each of the three years presented. (use the income statement)

2. What was the gross profit rate (percentage) for each of the three years reported? (use the income statement)

3. What was the dollar amount of inventory reported in the company’s most recent balance sheet? (use the balance sheet)

4. What were the company’s sales per square foot of selling space for each of the three years reported? (find this in the “Management Discussion and Analysis” section of the annual report)

5. For the most recent year reported, how many new stores were opened? How many existing stores, if any, were closed? (find this in the “Management Discussion and Analysis” section of the annual report)

Answer 1

Dollar General Corp.
	Jan 31, 2020	Feb 1, 2019	Feb 1, 2018
Net Sales	$      2,77,53,973	$      2,56,25,043	$      2,34,70,967
Absolute Increase	$         21,28,930	$         21,54,076
Percentage	8%	9%
Gross Profit	$         84,89,061	$         78,03,870	$         72,21,359
Gross Profit Rate	31%	30%	31%
Inventory	$         46,76,848
Sales per Square Foot of Selling Space	$                    237	$                    231	$                    227
New Stores Opened	975
Existing Stores Closed	67