Dollar Tree, Inc. Common Size Income Statement Total revenue Cost of sales Selling, general and administrative expenses Operating income interest expense, net Other expense, net ncome before income taxes Provision for income taxes Net income 12 Months Ended Jan. 28, 2023 Jan. 29, 2022 Jan. 30, 2021 28,331.7 26,321.2 25,509.3 19,396.3 18,583.9 17,721 6,699.1 5,925.9 5,900.4 1,811.4 2,236.3 125.3 0.4 2,110.6 495.2 $ 1.615.4 1,887.9 147.3 0.8 1,739.8 397.9 $1,341.9 178.9 0.3 1,632.2 304.3 $ 1,327.9 Jan. 28, 2023 Percentages Jan. 29, 2022 Jan. 30, 2021 a. Review the vertical analysis and provide the two largest expenses for the current year. Explain the trend over the three years for these two expenses and discuss how these costs affects net earnings. b. Discuss the fluctuations in interest expense. What are reasons that could cause changes in interest expense? You need to provide specific causes for the applicable company that relates specifically to the interest expense. c. Discuss the fluctuations in income tax expense. What are reasons that could cause changes in income tax expense? You need to provide specific causes for the applicable company that relates specifically to the income tax expens d. Was the company more or less profitable when compared to the prior year? Using the specific income statement ratios or amounts, explain what caused the change in income from the prior year.
Dollar Tree, Inc. Common Size Income Statement Total revenue Cost of sales Selling, general and administrative expenses Operating income interest expense, net Other expense, net ncome before income taxes Provision for income taxes Net income 12 Months Ended Jan. 28, 2023 Jan. 29, 2022 Jan. 30, 2021 28,331.7 26,321.2 25,509.3 19,396.3 18,583.9 17,721 6,699.1 5,925.9 5,900.4 1,811.4 2,236.3 125.3 0.4 2,110.6 495.2 $ 1.615.4 1,887.9 147.3 0.8 1,739.8 397.9 $1,341.9 178.9 0.3 1,632.2 304.3 $ 1,327.9 Jan. 28, 2023 Percentages Jan. 29, 2022 Jan. 30, 2021 a. Review the vertical analysis and provide the two largest expenses for the current year. Explain the trend over the three years for these two expenses and discuss how these costs affects net earnings. b. Discuss the fluctuations in interest expense. What are reasons that could cause changes in interest expense? You need to provide specific causes for the applicable company that relates specifically to the interest expense. c. Discuss the fluctuations in income tax expense. What are reasons that could cause changes in income tax expense? You need to provide specific causes for the applicable company that relates specifically to the income tax expens d. Was the company more or less profitable when compared to the prior year? Using the specific income statement ratios or amounts, explain what caused the change in income from the prior year.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
Calculate the common size percentages and answer the questions below.
Transcribed Image Text:Dollar Tree, Inc. Common Size Income Statement
Total revenue
Cost of sales
Selling, general and administrative expenses
Operating income
Interest expense, net
Other expense, net
Income before income taxes
Provision for income taxes
Net income
12 Months Ended
Jan. 28, 2023 Jan. 29, 2022 Jan. 30, 2021 Jan. 28, 2023
28,331.7
26,321.2
19,396.3
18,583.9
6,699.1
5,925.9
#
2,236.3
1,811.4
125.3
178.9
0.4
0.3
2,110.6
1,632.2
495.2
304.3
$1,615.4
$ 1,327.9
25,509.3
17,721
5,900.4
1,887.9
147.3
0.8
1,739.8
397.9
$ 1,341.9
Percentages
Jan. 29, 2022 Jan. 30, 2021
a. Review the vertical analysis and provide the two largest expenses for the current year. Explain the trend over the three years for these two expenses and discuss how these costs affects net earnings.
b. Discuss the fluctuations in interest expense. What are reasons that could cause changes in interest expense? You need to provide specific causes for the applicable company that relates specifically to the interest expense.
c. Discuss the fluctuations in income tax expense. What are reasons that could cause changes in income tax expense? You need to provide specific causes for the applicable company that relates specifically to the income tax expense.
d. Was the company more or less profitable when compared to the prior year? Using the specific income statement ratios or amounts, explain what caused the change in income from the prior year.
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