1. Calculate the company's working capital, current ratio, and acidtest ratio at January 30, 2016 and January 31, 2015. Round to 2 decimal places. (3 points)

2016 2015

Working Capital
Current Ratio
Acid-Test Ratio

2. Based on the results of your analysis above, assess the company's overall liquidity position. Explain which ratios indicate particular strengths and/or weaknesses. Assume the following industry averages for 2016 and 2015 respectively:

Current ratio = 2.0 and 2.1; Acid-test ratio = 0.4 and 0.3 (4 points)

3. Explain how working capital and the current ratio are related. Would you expect firms with large amounts of working capital to always have high current ratios? (3 points)

4. Calculate ROI for January 30, 2016 and January 31, 2015. Round to 1 decimal place. (Total assets at 2/01/14 amounted to $1,739,599 in thousands) (2 points)

2016	2015

5. Calculate ROE for January 30, 2016 and January 31, 2015. Round to 1 decimal place. (Total stockholders equity at 2/01/14 amounted to $901,427 in thousands) (2 points)

2016	2015

6. Calculate the price to earnings ratio for 2016 and 2015. Market price per share was $38.78 at 01/30/16 and $41.91 at 01/31/15. Round to 1 decimal place. (2 points)

2016	2015

7. Calculate the gross profit ratios for 2016, 2015, and 2014. Round to 1 decimal place.

(3 points)

2016	2015	2014

8. Calculate the operating profit ratios 2016, 2015, and 2014. Round to 1 decimal place.

(3 points)

2016	2015	2014

9. Calculate the dividend payout ratio and the dividend yield for January 30, 2016.

Round to 1 decimal place. (2 points)

Payout	Yield

10. Based on the results of your analysis above, assess the company's overall profitability and dividend policy. Explain which ratios indicate particular strengths and/or weaknesses within the company. Assume the following industry averages: (4 points)

2016: ROI = 9.8%; ROE = 17.1%; P/E ratio = 18.6; Gross Profit = 35.5%; Operating Profit = 8.7%

2015: ROI = 7.0%; ROE = 15.9%; P/E ratio = 20.9; Gross Profit = 36.6%; Operating Profit = 7.9%

11. Calculate the debt ratio, at January 30, 2016 and January 31, 2015. Round to 2 decimal places. (2 points)

2016	2015

12. Calculate the debt/equity ratio at January 30, 2016 and January 31, 2015. Round to 2 decimal places. (2 points)

2016	2015

13. Based on the results of your analysis above, assess the company's overall leverage position. Assume the following industry averages for both years: (4 points)

2016: debt ratio = .50 and debt/equity ratio = 1.00

2015: debt ratio = .46 and debt/equity ratio = 0.87 Defend your answer.

14. Calculate the inventory turnover and the number of days' sales in inventory (based on a 365-day year) for the year ended January 30, 2016 and January 31, 2015. Round to 1 decimal place. (Total inventories at 02/01/14 amounted to $914,965 in thousands) (4 points)

	2016	2015
Turnover
Day

15. In your review of the consolidated statement of cash flows for January 30, 2016, what are the 3 major sources (excluding Net income and depreciation & amortization) of cash provided and 3 major uses by Big Lots, Inc. (3 points)

Overall assessment:

16. Assume that you have $1,000 that you would like to invest in the common stock of a company. Evaluate the common stock of Big Lots, Inc. as a potential investment. Would you buy the stock? From the data available on the attached financial statements, or items discussed in class, identify the three most important criteria that you would use to make your investment decision - defend your answer. (7 points)

Cash FlowAll numbers in thousands

Period Ending	1/30/2016	1/31/2015	2/1/2014
Net Income	142,873	114,276	125,295
Operating Activities, Cash Flows Provided By or Used In
Depreciation	108,054	105,849	102,196
Adjustments To Net Income	12,735	39,867	2,355
Changes In Accounts Receivables	-	-	-
Changes In Liabilities	85,386	-11,153	-43,617
Changes In Inventories	1,687	63,336	1,385
Changes In Other Operating Activities	-8,383	6,387	10,720
Total Cash Flow From Operating Activities	342,352	318,562	198,334
Investing Activities, Cash Flows Provided By or Used In
Capital Expenditures	-125,989	-93,460	-104,786
Investments	-	-	-
Other Cash flows from Investing Activities	12,796	2,711	7,291
Total Cash Flows From Investing Activities	-113,193	-90,749	-97,495
Financing Activities, Cash Flows Provided By or Used In
Dividends Paid	-38,530	-27,828	-27,828
Sale Purchase of Stock	-185,584	-208,065	4,670
Net Borrowings	-5,012	-17,265	-96,184
Other Cash Flows from Financing Activities	520	62	195
Total Cash Flows From Financing Activities	-227,276	-249,320	-91,196
Effect Of Exchange Rate Changes	-	5,139	-1,595
Change In Cash and Cash Equivalents	1,883	-16,368	8,048

Income StatementAll numbers in thousands

Revenue	1/30/2016	1/31/2015	2/1/2014
Total Revenue	5,190,582	5,177,078	5,124,755
Cost of Revenue	3,123,396	3,133,124	3,117,386
Gross Profit	2,067,186	2,043,954	2,007,369
Operating Expenses
Research Development	-	-	-
Selling General and Administrative	1,708,717	1,699,764	1,664,031
Non Recurring	-	-	-
Others	122,737	119,702	113,228
Total Operating Expenses	-	-	-
Operating Income or Loss	235,732	224,488	230,110
Income from Continuing Operations
Total Other Income/Expenses Net	-5,199	-5,199	-12
Earnings Before Interest and Taxes	230,533	224,488	230,098
Interest Expense	3,683	2,588	3,293
Income Before Tax	226,850	221,900	226,805
Income Tax Expense	83,842	85,239	85,515
Minority Interest	-	-	-
Net Income From Continuing Ops	143,008	136,661	141,290
Non-recurring Events
Discontinued Operations	-135	-22,385	-15,995
Extraordinary Items	-	-	-
Effect Of Accounting Changes	-	-	-
Other Items	-	-	-
Net Income
Net Income	142,873	114,276	125,295
Preferred Stock And Other Adjustments	-	-	-
Net Income Applicable To Common Shares	142,873	114,276	125,295

Balance SheetAll numbers in thousands

Period Ending	1/30/2016	1/31/2015	2/1/2014
Current Assets
Cash And Cash Equivalents	54,144	52,261	68,629
Short Term Investments	-	-	-
Net Receivables	-	-	59,781
Inventory	849,982	851,669	914,965
Other Current Assets	90,306	95,345	77,686
Total Current Assets	994,432	999,275	1,121,061
Long Term Investments	-	-	-
Property Plant and Equipment	559,924	550,555	569,682
Goodwill	-	-	-
Intangible Assets	-	-	-
Accumulated Amortization	-	-	-
Other Assets	38,275	39,768	43,750
Deferred Long Term Asset Charges	47,739	46,293	5,106
Total Assets	1,640,370	1,635,891	1,739,599
Current Liabilities
Accounts Payable	678,448	587,829	577,447
Short/Current Long Term Debt	-	-	-
Other Current Liabilities	-	-	-
Total Current Liabilities	678,448	587,829	577,447
Long Term Debt	62,300	62,100	77,000
Other Liabilities	119,698	130,482	107,361
Deferred Long Term Liability Charges	59,454	65,930	76,364
Minority Interest	-	-	-
Negative Goodwill	-	-	-
Total Liabilities	919,900	846,341	838,172
Stockholders' Equity
Misc. Stocks Options Warrants	-	-	-
Redeemable Preferred Stock	-	-	-
Preferred Stock	-	-	-
Common Stock	1,175	1,175	1,175
Retained Earnings	2,210,239	2,107,100	2,021,357
Treasury Stock	-2,063,091	-1,878,523	-1,670,041
Capital Surplus	588,124	574,454	562,447
Other Stockholder Equity	-15,977	-14,656	-13,511
Total Stockholder Equity	720,470	789,550	901,427
Net Tangible Assets	720,470	789,550	901,427