Financial Statements And Cash Flows For Each Company

1316 WordsApr 12, 20166 Pages
Exploring the Financial Statements The balance sheet, income statement, and statement of cash flows for each company is presented in the Appendix. Dollar Tree’s financial statements are presented in Attachments 2-4 (pages XXX-XXX). Dollar General’s financial statements are presented in Attachments 5-7 (pages XXX-XXX). All calculations described in this current section can be found in Attachment 8 (page XXX). Both Dollar Tree and Dollar General use U.S. Generally Accepted Accounting Principles (GAAP) to compile their financial statements. Dollar Tree’s fiscal year-end is January 31 whereas Dollar General’s fiscal year end is January 30. Dollar Tree and Dollar General have very similar capital structures. At the end of the fiscal year 2014 (January 31 or 30, 2015), both companies had about 50% liabilities and 50% equity. This represents a debt-to-equity ratio of 1.00. Dollar Tree: Attachment 2 (page XXX) shows the consolidated balance sheet for Dollar Tree. Dollar Tree had a total of $3,567,000 in assets at the fiscal year-end of 2014; comprised of current assets of $1,994,600 (55.9%) and long-term assets and intangible assets of $1,572,400 (44.1%). Attachment 8 (page XXX) shows that Dollar Tree had a return on average assets (ROAA) of 18.9% for the fiscal year-end of 2014. ROAA can be disaggregated into profit margin (profitability) and asset turnover (productivity) ratios. Dollar Tree’s profit margin at the fiscal year-end of 2014 was 7.0% and its asset

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