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P1. Use the 2017 financial statements for Dollar General Corporation and Big Lots, Inc. (available in the week 15 module on Canvas) to prepare a

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P1. Use the 2017 financial statements for Dollar General Corporation and Big Lots, Inc. (available in the week 15 module on Canvas) to prepare a vertical analysis of the income statement. See slide 11 of lecture 12 for an example. Note: Big Lots lists depreciation expense separately. For this exercise, add depreciation expense to selling, general, and administrative expense. Dollar General Year ended February 2, 2018 Big Lots Year ended February 3, 2018 Dollars Percent Dollars Percent 100.0% 100.0% Net sales Cost of goods sold Gross profit Selling, general, admin expenses Income from operations Interest expense Other (income) expense Income before income taxes Income tax expense Net income P2. What are two interesting take-aways or thoughts you have from the vertical analysis above? P3. Calculate the profit margin and the asset turnover ratios for both companies. P4. Based on these calculations, which would be the better investment

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